EXHIBIT 99(ii)
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INFORMATION
FOR IMMEDIATE RELEASE
LOCKHEED MARTIN POSTS
10% EARNINGS INCREASE
BETHESDA, Maryland, April 24 -- Lockheed Martin Corporation (NYSE:LMT) today
reported first quarter 1996 net earnings of $272 million, or $1.22 per fully
diluted share, compared to first quarter 1995 net earnings of $137 million, or
$0.62 per share.
First quarter 1995 earnings reflected a pre-tax charge of $165 million, or $0.50
per fully diluted share, related to merger and associated consolidation
expenses. Excluding these expenses from first quarter 1995 results, net earnings
in the first quarter of 1996 increased 10 percent, while earnings per fully
diluted share increased 9 percent.
Sales for first quarter 1996 were $5.1 billion, versus $5.6 billion one year
ago, a 9 percent change, primarily due to timing of aircraft deliveries and
commercial space launches. Backlog, however, increased 3.5 percent during the
first quarter to $42.6 billion. Average outstanding fully diluted shares in the
1996 first quarter were 222.7 million, an increase of 2.2 million shares over
the same 1995 period.
"While there was a slight dip in sales for the first quarter, largely due to
timing issues, we booked nearly $7 billion in new and follow-on business,
reflecting the realization of synergies from the Lockheed Martin merger. We
remain focused on improving competitiveness, reducing costs to our customers and
pursuing significant growth opportunities. We expect our strategic combination
with Loral to positively contribute to these goals," said Norman R. Augustine,
Lockheed Martin's president and chief executive officer.
The Space & Strategic Missiles Sector reported a 10 percent sales decline due to
fewer launches of its Atlas booster in first quarter 1996 versus 1995 and lower
production rates of both Titan launch vehicles and fleet ballistic missiles for
the Trident submarine. Earnings as a percent of sales were up sharply from 9.8
percent to 13.5 percent due to increased margins on key programs.
The Sector recently received two eight-year contracts totaling $2.5 billion to
continue processing and launching Titan IV and Titan II space launch vehicles.
The Sector's launch of an Atlas booster, which deployed on orbit a
telecommunications satellite, marked the 22nd consecutive successful Atlas
launch from Cape Canaveral. Two Lockheed Martin-built telecommunications and
meteorological spacecraft also were successfully placed on orbit during the
quarter.
Sales in the Electronics Sector increased 7 percent in first quarter 1996, which
represents a reversal of the sales decline experienced during 1995, and profit
margins held steady at 11 percent. Key contributors to the sales increase were
helicopter night vision targeting and navigation systems, the Javelin missile
system, precision-guided weapons and contributions of the former GE aircraft
controls business acquired by Lockheed Martin during fourth quarter 1995.
Also during first quarter 1996, the Sector was awarded initial design and
support contracts totaling more than $100 million to supply an undersea warfare
combat system to the U.S. Navy. The Longbow Limited Liability Company, a joint
venture of Lockheed Martin and Northrop Grumman, was awarded U.S. Army contracts
valued at $164 million to begin production of the Longbow Hellfire missile
system.
(more)
Lower first quarter sales in the Aeronautics Sector reflected fewer aircraft
deliveries of the F-16 fighter and P-3 maritime aircraft. F-16 deliveries are
expected to increase steadily each quarter during 1996 and double in 1997. Four
C-130 aircraft were delivered during first quarter 1996, the same as the period
one year ago. The Sector's earnings as a percent of sales rose to 8.3 percent
during the quarter.
Significant highlights for Aeronautics included first flight of the new C-130J
airlifter. The Sector successfully tested its propulsion concept for the new
Joint Strike Fighter for which it is competing, and assembly began on the
forward fuselage of the first engineering and manufacturing development phase
F-22 air superiority fighter.
The Information & Technology Services Sector recorded a 6 percent increase in
sales during first quarter 1996, attributable to greater volume in commercial
products distribution, information systems and classified activities. Earnings
in the quarter were $51 million, a 7% increase over first quarter 1995 earnings.
The Sector supported three successful Space Shuttle missions during the quarter
and delivered the first test article of the Shuttle's new lightweight external
fuel tank. United Space Alliance (USA), a joint venture between Lockheed Martin
and Rockwell International, took an important step toward consolidating Space
Shuttle operations and processing under a single prime contractor with the
novation of two existing contracts at Kennedy Space Center and Johnson Space
Center to USA.
The Corporation's Energy & Environment Sector, Materials business and other
segments reported steady sales and margin performance. During first quarter
1996, Lockheed Martin and Molten Metal Technology, Inc., agreed to expand the
scope and resources of their 50/50 limited partnership, M4 Environmental, L.P.
During first quarter 1996, the Corporation increased its quarterly common stock
dividend from $0.35 to $0.40 to reflect a settlement of shareholder litigation
associated with the 1995 Lockheed Martin merger.
Lockheed Martin, headquartered in Bethesda, Maryland, is a highly diversified
advanced technology Corporation with core businesses in aeronautics,
electronics, energy and environment, information and technology services, space
and missiles, tactical systems and materials.
04242496
CONTACT: Charles Manor, Lockheed Martin News & Information, 301/897-6258
Lockheed Martin news releases are available through PR Newswire's Company News-
On-Call fax service and PRN's Web site. For a menu of Lockheed Martin's news
releases, or to retrieve a particular release, telephone 1-800-758-5804, ext.
534163. The PRN Web site address is http://www.prnewswire.com. Additional
information on Lockheed Martin is available through the Corporation's Web site.
The address is http://www.lmco.com.
LOCKHEED MARTIN CORPORATION
CONSOLIDATED RESULTS
(IN MILLIONS, EXCEPT PER SHARE)
QUARTER ENDED MARCH 31,
-----------------------
%
1996 1995 CHANGE
------- ------ ------
Sales ........................................ $5,109 $5,644 -9%
Earnings before Interest and Taxes*........... $ 502 $ 312 61%
Interest Expense.............................. $ 71 $ 79 -10%
Pre-tax earnings*............................. $ 431 $ 233 85%
Income Taxes**................................ $ 159 $ 96 66%
Effective Tax rate**.......................... 37% 41% N/M
Net Earnings*................................. $ 272 $ 137 99%
Primary Earnings per share.................... $ 1.35 $ 0.85 108%
Average shares assuming no dilution........... 189.3 188.5
Fully Diluted Earnings per share.............. $ 1.22 $ 0.62 97%
Average shares assuming full dilution......... 222.7 220.5
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* Includes 1995 pre-tax merger related expenses of $165M ($110M after-tax or
$0.50 per share fully diluted.)
** The income tax rate for 1996 would have been approximately 38 percent if not
for the recording of merger related expenses.
4
LOCKHEED MARTIN CORPORATION
COMPARISON OF EARNINGS
(IN MILLIONS, EXCEPT PER SHARE)
QUARTER ENDED MARCH 31,
-----------------------
%
1996 1995 CHANGE
------- ------ ------
Net Earnings -- As reported................... $ 272 $ 137
Merger Related Expenses....................... 0 $ 110
------- ------
Adjusted Net Earnings......................... $ 272 $ 247 10%
Earnings per share, Assuming Full Dilution.... $ 1.22 $ 1.12 9%
OTHER FINANCIAL INFORMATION -- AS REPORTED
3/31/96 12/31/95
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Backlog....................................... $42,553 $41,125
Total Debt.................................... $ 3,601 $ 3,732
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Long-Term................................. $ 2,999 $ 3,377
Short-Term................................ $ 253 $ 0
ESOP...................................... $ 349 $ 355
Cash and Cash Equivalents..................... $ 156 $ 653
Stockholders' Equity.......................... $ 6,656 $ 6,433
Total debt-to-capital......................... 35% 37%
LOCKHEED MARTIN CORPORATION
(IN MILLIONS)
SEGMENT RESULTS*
QUARTER ENDED MARCH 31,
%
1996 1995 CHANGE
------ ------ -------
Space & Strategic Missiles
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Sales............................... 1,670 1,852 -10%
Segment EBIT........................ 226 181 25%
Margins............................. 13.5% 9.8%
Electronics
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Sales............................... 867 810 7%
Segment EBIT........................ 94 89 6%
Margins............................. 10.9% 11.0%
Info & Technology Services
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Sales............................... 1,093 1,035 6%
Segment EBIT........................ 51 47 7%
Margins............................. 4.6% 4.6%
Agronautics
- -----------
Sales............................... 1,299 1,768 -27%
Segment EBIT........................ 108 140 -23%
Margins............................. 8.3% 7.9%
Energy, Materials & Other
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Sales............................... 180 179 1%
Segment EBIT........................ 23 20 14%
Margins............................. 12.8% 11.4%
*Excludes 1995 merger related expenses