Lockheed Martin Reports Q4, FY 2020 Financial Results; James Taiclet Quoted

Lockheed Martin Reports Q4, FY 2020 Financial Results; James Taiclet Quoted
James Taiclet Chairman

Lockheed Martin Corporation has reported fourth quarter and full year 2020 results on Tuesday. The company’s fourth quarter 2020 net sales were $17.0 billion, compared to $15.9 billion in the fourth quarter of 2019. 

“In concert with our resilient operational performance, we delivered strong financial results on behalf of our shareholders and contributed to our communities through the production of PPE, accelerated payments to small and medium businesses, and elevated charitable contributions to support a range of important local and national services," said Lockheed Martin president and CEO James Taiclet.

Lockheed Martin’s net earnings from continuing operations in the fourth quarter of 2020 were $1.8 billion, compared to $1.5 billion in the fourth quarter of 2019. The company reported $1.8 billion cash from operations in the fourth quarter of 2020, compared to $1.5 billion in the fourth quarter of 2019. 

The company’s net sales in 2020 were $65.4 billion, compared to $59.8 billion in 2019. Net earnings from continuing operations in 2020 were $6.9 billion, compared to $6.2 billion in 2019. Lockheed Martin’s cash from operations in 2020 was $8.2 billion, compared to $7.3 billion, in 2019. 

Notably, Lockheed Martin entered into an agreement to acquire Aerojet Rocketdyne Holdings for $56 per share in cash, which is expected to be reduced to $51 per share after Aerojet Rocketdyne pays a pre-closing special dividend to its stockholders on March 24, 2021.

The purchase represents a post-dividend equity value of approximately $4.6 billion, on a fully diluted as-converted basis, and a transaction value of approximately $4.4 billion after the assumption of Aerojet Rocketdyne's projected net cash balance.

"We also initiated an enhanced strategic vision for Lockheed Martin designed to accelerate the adoption of leading edge networking and related technologies into our national defense enterprise, while enhancing the performance and value of our major platforms to our customers,” Taiclet added.  

The acquisition will enable Lockheed Martin to integrate Aerojet Rocketdyne's propulsion systems into its products, generate cost and revenue synergies and improve efficiencies in Aerojet Rocketdyne's production operations. 

The transaction will also enable customers incorporating Aerojet Rocketdyne products to offer timely, innovative and affordable solutions, and reduce the prices paid by the U.S. Government for systems it buys. “We intend to maintain our momentum as we enter 2021 in all of these dimensions for the benefit of our customers, communities and shareholders," Taiclet concluded. 

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