Lockheed Martin Corp. announced Tuesday net sales of $11.7 billion and net earnings of $794 million for the first quarter of 2016. Net sales increased from $10.1 billion in the same quarter of last year, while net earnings dropped from $878 million in that same time period. Overall, Lockheed’s first-quarter financials “exceeded all of our internal plans,” President and CEO Marillyn Hewson said during an earnings call.
Sandia Corp., a wholly owned subsidiary of Lockheed Martin, is the managing and operating contractor for the Sandia National Laboratories. In 2012, Lockheed announced a reorganization that transferred Sandia Corp. from what was formerly its Electronic Systems business segment to its Space Systems division, one of the company’s five segments. Lockheed reported $2.1 billion in net sales for Space Systems in the first quarter, down from $2.2 billion in the same quarter last year. It also reported $244 million in operating profit for the division, down from $324 million in the same time period last year. This totals a 4 percent decrease in net sales and a 25 percent decrease in operating profit for the division since last year. The company attributed the decreases to lower net sales and operating profits for government satellite programs. Officials leading the earnings call did not specifically discuss Sandia.
Sandia Corp.’s current contract with the National Nuclear Security Administration expires at the end of April 2017, and the agency is now conducting an open competition for a follow-on contract to manage and operate the facility.
Lockheed’s Information Systems and Global Solutions business segment, which contains the Mission Support Alliance team that provides support services at the Department of Energy’s Hanford Site, reported net sales of $1.3 billion in the first quarter of 2016, a 4 percent decrease from the same period last year, and a $109 million operating profit in the quarter, a 25 percent decrease from last year, in part due to the “wind-down or completion of certain programs to provide IT solutions to U.S. defense and intelligence agencies.” Mission Support Alliance is part of an upcoming deal in which Lockheed will transfer its technical services business to Leidos for $5 billion during the second half of this year. Lockheed said today that its projections on future performance and financial outlook are subject to change based on uncertainties including risks related to the transaction with Leidos.
