Lockheed Martin 2008 Annual Report Download - page 14

As part of our adjacent market strategy, MS2 pursued and was awarded the Fleet Automotive Support Initiative-Global
contract by the Defense Logistics Agency to provide parts support for all of the U.S. military’s land vehicles.
The U.S. Navy accepted delivery of the Littoral Combat Ship Freedom (LCS-1) in September 2008 following successful
completion of builder’s and acceptance trials, and commissioned the ship in Milwaukee, Wisconsin in November. The USS
Freedom is the first in a new class of ships designed to provide the added flexibility of interchangeable modular mission
packages and the ability to operate in coastal waters. Operational restrictions within the Great Lakes prevented the testing of
the ship’s weapons systems which are scheduled to be demonstrated in follow-on acceptance trials on the open sea in Spring
2009.
MS2 also completed two acquisitions during 2008. We acquired our former co-owner’s interest in RLM Holdings Pty
Ltd, headquartered in Adelaide, Australia in August 2008. We now own 100% of that business. The company specializes in
systems engineering, software development, system integration, testing, and support of large, complex, leading-edge
systems. In September 2008, we completed our acquisition of Aculight Corporation, based in Bothell, Washington. Aculight
is focused on providing laser-based solutions for national defense and aerospace customers. The company has expertise in
countermeasures, laser radar, high-power directed energy and other applications.
Missiles & Fire Control
Missiles & Fire Control develops and produces land-based, air and theater missile-defense systems, tactical battlefield
missiles, electro-optical systems, fire-control and sensor systems, and precision-guided weapons and munitions. We also
provide sustainment and logistic services in support of fire control and tactical missile programs.
The PAC-3 missile is an advanced defensive missile designed to intercept incoming airborne threats. During 2008, we
delivered a total of 141 missiles, including the first FMS PAC-3 test missile and ground support equipment for Germany. A
fourth quarter award was received for 172 missiles, which includes 108 U.S. missiles and 64 missiles for FMS customers.
The Arrowhead fire control system provides modernized targeting and piloting capabilities for Apache helicopter crews
to the U.S. Army and international customers, continuing our over 20-year legacy of providing pilot night-vision sensors and
targeting capabilities for the Apache. More than 1,000 sensor systems have been delivered to the U.S. Army and foreign
military customers since 1983. The Arrowhead kits will replace certain legacy hardware on the U.S. Army and other
international customers’ Apache helicopters to provide a modernized sensor for safer flight in day, night and bad weather
missions and improved weapons targeting capability. The initial Arrowhead production contract was awarded in 2003 and we
delivered our 500th Arrowhead system in 2008. We received awards in 2008 for Arrowhead Lot 5 from the U.S. Army and
for international production which authorized 110 additional Arrowhead kits through November 2010. The U.S. Army also
awarded us a contract for modernization of the day sensor assembly and legacy obsolescence replacement.
The Terminal High Altitude Area Defense (THAAD) system is a transportable defensive missile system designed to
engage targets both inside and outside of the Earth’s atmosphere. The THAAD system is comprised of the THAAD fire
control and communication units, missiles, radars, launchers, and ground support equipment. The development phase of the
program continues, with two successful test flights conducted in 2008 and ten successful flights achieved overall. Initial
production effort is underway, with system fielding planned for 2010.
Among other 2008 accomplishments, in June we received the largest single award for Hellfire missiles in the program’s
history. In September, we were one of three contractors selected for the technology demonstration phase of the Joint Air to
Ground Missile program by the U.S. Army, and we delivered our 5,000th guided Multiple Launch Rocket System missile in
2008.
Platform, Training & Energy
Our Platform, Training & Energy (PT&E) business integrates mission-specific applications for fixed- and rotary-wing
platforms, including: provides logistics and sustainment; develops and integrates postal automation and material handling
systems; develops tactical wheeled vehicles; and provides simulation, training, and support services. We also manage Sandia
National Laboratories for the U.S. Department of Energy. Sandia National Laboratories supports the stewardship of the U.S.
nuclear weapons stockpile, developing sophisticated research and technology in the areas of engineering sciences, materials
and processes, pulsed power, microelectronics and photonics, micro-robotics, and computational and information sciences. In
the United Kingdom, we own one-third of a joint venture that manages that country’s Atomic Weapons Establishment
program.
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