Lockheed Martin Corp. on Tuesday announced net sales of $13.8 billion and net earnings from continuing operations of $959 million for the fourth quarter of 2016. Net sales increased from $11.5 billion and net earnings from $817 million for the same quarter of 2015. The company also reported net sales of $47.2 billion for full-year 2016, up from $40.5 billion in 2015. Net earnings landed at $3.8 billion in 2016, spiking from $3.1 billion in 2015.
Net earnings jumped to $3.25 per share in the fourth quarter from $2.63 per share in the same quarter of 2015. Net earnings of $12.38 per share for all of 2016 were up from $9.93 per share in 2015.
Lockheed subsidiary Sandia Corp., the management and operations contractor for the Department of Energy’s Sandia National Laboratories until the end of April, is positioned in the company’s Space Systems division. The business segment reported $2.8 billion in net sales for the quarter, up from $2.4 billion in fourth-quarter 2015; and $9.4 billion in 2016, up from $9.1 billion in 2015. The company attributed the increase to net sales from the AWE Management Ltd. venture and increased launch-related activities for commercial space transportation programs.
The division also reported a $255 million operating profit in the quarter, down from $288 million in the same period of 2015, which the company attributed largely to a profit decrease in government satellite programs. The division reported a $1.3 billion operating profit in 2016, up from $1.2 billion from 2015, which it attributed to gains related to its consolidation of AWE and increased equity earnings from joint ventures.
The National Nuclear Security Administration last month awarded a new contract for management and operations of the Sandia National Laboratories to a Honeywell subsidiary. A Lockheed subsidiary in 2016 won a contract to manage the Nevada National Security Site, which was then rescinded when the NNSA learned that ownership of the subsidiary had been transferred to Leidos as part of Lockheed’s divestiture of its Information Systems & Global Solutions business segment last August. The NNSA is re-evaluating offers for the site contract.
Lockheed predicted net sales of $49.4 billion to $50.6 billion in 2017, and diluted earnings per share between $12.25 and $12.55.
