Lockheed Martin 2001 Annual Report Download - page 22

Lockheed Martin Annual Report >>> 29
Lockheed Martin Corporation
(Continued)
comparisons of recorded sales and profits, may not be
indicative of future operating results. The following discus-
sions of comparative results among periods should be
viewed in this context.
Continuing Operations
The Corporation’s consolidated net sales for 2001
were $24.0 billion, a decrease of two percent compared
to 2000. Sales for 2000 were $24.5 billion, a decrease
of two percent compared to 1999. Sales growth in the
Aeronautics and Technology Services segments during
2001 were more than offset by decreases in the remaining
business segments as compared to 2000. In 2000,
increased sales in the Systems Integration, Space Systems
and Technology Services segments were more than offset
by lower sales in the Aeronautics segment. Adjusting for
acquisitions and divestitures, sales remained comparable
when comparing 2001 to 2000 and 2000 to 1999.
The U.S. Government remained the Corporation’s largest
customer, accounting for approximately 78 percent of the
Corporation’s sales for 2001 compared to 72 percent in
both 2000 and 1999.
The Corporation’s operating profit (earnings from con-
tinuing operations before interest and taxes) for 2001 was
$888 million, a decrease of 29 percent compared to 2000.
Operating profit for 2000 was approximately $1.3 billion,
a decrease of 37 percent compared to 1999. The reported
amounts for the three years presented include various non-
recurring and unusual items. The impact of these items on
operating profit, net (loss) earnings and amounts per
diluted share is as follows:
Effects of nonrecurring and unusual items:
(Loss)
Operating Net earnings
(loss) (loss) per diluted
(In millions) profit earnings share
Year ended December 31, 2001
Continuing operations
Write-off of investment in
Astrolink and related costs $ (387) $ (267) $ (0.62)
Write-down of investment
in Loral Space (361) (235) (0.54)
Other charges related to
global telecommunications (176) (117) (0.27)
Gain on sale of surplus real estate 111 72 0.17
Impairment charge related to
Americom Asia-Pacific (100) (65) (0.15)
Other portfolio shaping activities (5) (3) (0.01)
(918) (615) (1.42)
Discontinued operations—charges
related to discontinued
businesses, net of IMS gain — (1,027) (2.38)
Extraordinary item—loss on
early extinguishment of debt — (36) (0.08)
$ (918) $(1,678) $ (3.88)
Year ended December 31, 2000
Continuing operations
Loss related to AES Transaction $(598) $ (878) $(2.18)
Gain on sale of Control Systems 302 180 0.45
Charge related to
Globalstar guarantee (141) (91) (0.23)
Impairment charge related to ACeS (117) (77) (0.19)
Partial reversal of CalComp reserve 33 21 0.05
Gain on sales of surplus real estate 28 19 0.05
Other portfolio shaping items (46) (30) (0.07)
(539) (856) (2.12)
Extraordinary item—loss on early
extinguishment of debt —(95) (0.24)
$(539) $ (951) $(2.36)
Year ended December 31, 1999
Continuing operations
Gain on divestiture of interest in L-3 $ 155 $ 101 $ 0.26
Gain on sales of surplus real estate 57 37 0.10
Partial reversal of CalComp reserve 20 12 0.03
Divestitures and other
portfolio shaping items 17 12 0.03
249 162 0.42
Cumulative effect of change in
accounting principle —(355) (0.93)
$ 249 $ (193) $(0.51)
Excluding the effects of these nonrecurring and unusual
items for each year, operating profit for 2001 would have
increased one percent as compared to 2000. Increases in
operating profit in the Aeronautics, Space Systems and
Technology Services segments more than offset decreases
in operating profit at the remaining business segments.
Net Sales
$0
$10,000
$15,000
$20,000
$25,000
(In millions)
$5,000
’01 ’00 ’99