Lockheed Martin reports drop in first-quarter net earnings

Lockheed Martin Corporation on April 21 reported first-quarter 2010 net sales of $10.6 billion, a 3 percent increase over the $10.4 billion in 2009. Net earnings for the first quarter of 2010 were $547 million, or $1.45 per diluted share, compared to $666 million, or $1.68 per diluted share, in 2009. As previously disclosed in the company’s March 31, 2010, Form 8-K, first-quarter 2010 net earnings included an unusual charge resulting from legislation that eliminates the tax deduction for benefit costs reimbursed under Medicare Part D. This unusual charge decreased net earnings by $96 million, or $0.25 per share. Cash from operations in the first quarter of 2010 was $1.6 billion, compared to $1.2 billion in 2009.

"We are off to a solid start for 2010," said Lockheed Martin chairman and CEO Bob Stevens. "We continue to execute on our programs, generate strong cash flow, and deploy cash to enhance stockholder value, all with a relentless focus on delivering affordable solutions to meet our customers' commitments."

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs approximately 136,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2009 sales of $45.2 billion.