Lockheed Martin Profits Rise In Q4

For the fourth quarter ended Dec. 31, 2008, IS&GS (2008 VARBusiness 500 rank 7) reported $3.3 billion in sales, compared with $2.8 billion in the year prior period. For the year, the division reported $11.6 billion in sales, up from $10.2 billion in 2007.

Lockheed is the nation's biggest defense contractor, and it operates four divisions. In addition to IS&GS, the other sectors are Electronics Systems, Aeronautics and Space Systems. Among those, IS&GS and Electronics posted gains from last year.

One of the principal drivers for the uptick in Information Systems was increased sales in enterprise solutions and services activities. Operating profit increased to $307 million from $275 million in the fourth quarter due to higher volume on information technology programs and a benefit from a contract restructuring during the first quarter of 2008. Operating profit year over year increased 13 percent.

Overall, Lockheed Martin reported that full year sales rose two percent, to $42.7 billion, and fourth quarter net sales rose 3 percent from $10.8 billion to $11.1 billion. Fourth quarter net earnings were up 3 percent to $823 million; full year net earnings were up 6 percent to $3.2 billion.