Lockheed Reports Q2 2020 Results; James Taiclet Quoted

James Taiclet
James Taiclet

Lockheed Martin reported net sales of $16.2 billion, net earnings of $1.6 billion and cash from operations of $2.2 billion for the second quarter of 2020.

"I'm pleased to see continued strong operational and financial results this quarter as we remain focused on performing with excellence for our customers while protecting the well-being of our employees and keeping our supply chain strong during this global pandemic," James Taiclet, president and CEO of Lockheed, said in a statement released Tuesday.

Lockheed’s Q2 net earnings include a non-cash impairment charge of $128 million for an investment in a joint venture that the corporation has entered into an agreement to sell.

The company’s cash activities in the second quarter of 2020 include paying cash dividends of $671 million and repurchasing 0.7 million shares for $259 million. In the second quarter of 2020 Lockheed Martin received and retired an additional 0.4 million shares upon settlement of the accelerated share repurchase agreement entered into in the first quarter of 2020.

Lockheed reported that no net proceeds from or repayments of commercial paper, compared to making net repayments of $400 million in the second quarter of 2019. In May 2020, the company received net proceeds of $1.13 billion from a $1.15 billion debt issuance of senior unsecured notes. 

Net proceeds consist of $400 million aggregate principal amount of 1.85 percent Notes due 2030 and $750 million aggregate principal amount of 2.80 percent Notes due 2050. 

In June 2020, the corporation used the net proceeds from the May 2020 debt offering plus cash on hand to redeem $750 million of the outstanding $1.25 billion in aggregate principal amount of the 2.50 percent Notes due 2020. 

In regards to the COVID-19 pandemic, Lockheed Martin has taken measures to protect the health and safety of its employees, work with its customers and suppliers to minimize disruptions and support its community. 

Lockheed reported that the corporation and federal government's efforts, especially with regard to the supply chain, helped to mitigate the disruptions caused by COVID-19 on the corporation's operations in the second quarter. 

"Our dedicated Lockheed Martin team, and strong portfolio, coupled with supportive governmental actions have positioned us to deliver vital national security solutions for our country and international partners, and long-term value for our shareholders."

About Lockheed Martin

Headquartered in Bethesda, Maryland, Lockheed Martin Corporation is a global security and aerospace company that employs approximately 110,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

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