Lockheed Martin 2008 Annual Report Download - page 56

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Operating profit for the segment increased by 12% in 2007 compared to 2006, representing an increase in all three lines
of business during the year. Operating profit increased $70 million at PT&E primarily due to higher volume and improved
performance on platform integration activities. MS2 operating profit increased $32 million due to higher volume on undersea
and tactical systems activities that more than offset lower volume on surface systems activities. At M&FC, operating profit
increased $32 million due to higher volume in fire control systems and improved performance in tactical missile programs,
which partially were offset by performance on certain international air defense programs in 2006.
The increase in backlog during 2008 over 2007 resulted primarily from increased orders for platform integration
programs at PT&E and for certain tactical missile programs and fire control systems at M&FC. The increase in backlog
during 2007 over 2006 resulted primarily from increased orders for certain tactical missile programs and fire control systems
at M&FC and platform integration programs at PT&E.
Information Systems & Global Services
Information Systems & Global Services’ operating results included the following:
(In millions) 2008 2007 2006
Net sales $11,611 $10,213 $ 8,990
Operating profit 1,076 949 804
Backlog at year-end 13,300 11,800 10,500
Net sales for IS&GS increased by 14% in 2008 compared to 2007. Sales increased in all three lines of business during
the year. Global Services’ sales increased $568 million principally due to Pacific Architects and Engineers (PAE) programs,
mission services and other international activities. Mission Solutions’ sales increased by $444 million primarily due to
mission and combat support solutions activities, as well as by transportation and security solutions. There was a $386 million
increase in Information Systems, which mainly was due to higher volume on enterprise solutions and services activities.
Net sales for IS&GS increased by 14% in 2007 compared to 2006. During the year, sales increased in Global Services,
Information Systems, and Mission Solutions. Global Services sales increased $609 million due to higher volume and growth
in mission services activities including the impact of the acquisition of PAE in September 2006. Information Systems sales
increased $401 million due to growth in information technology and the acquisition of Management Systems Designers, Inc.
(MSD) in February 2007. Higher volume in mission and combat support activities accounted for the majority of the $216
million sales increase at Mission Solutions.
Operating profit for the segment increased by 13% in 2008 compared to 2007. Operating profit increased in all three
lines of business during the year. Mission Solutions operating profit increased by $46 million due to higher volume and
improved performance on transportation and security solutions programs, as well as mission and combat support solutions
activities. Global Services operating profit increased $42 million primarily due to volume and improved performance on
mission services programs and other international activities. In Information Systems, operating profit increased by $24
million due to higher volume on information technology programs and a benefit from a contract restructuring during the first
quarter of 2008, which more than offset declines in mission services activities.
Operating profit for the segment increased by 18% in 2007 compared to 2006. During the year, operating profit
increased in all three lines of business. Mission Solutions operating profit increased $90 million due to higher volume in
mission and combat support solutions and aviation solutions activities. Global Services operating profit growth of $35
million was primarily attributable to the acquisition of PAE. Information Systems increased $34 million primarily due to
improved performance of information technology activities and the acquisition of MSD.
The increase in backlog during 2008 over 2007 was due to increased orders in Mission Solutions activities and Global
Services programs. The increase in backlog during 2007 over 2006 was due to increased orders in Mission Support activities
and Information Systems programs.
Aeronautics
Aeronautics’ operating results included the following:
(In millions) 2008 2007 2006
Net sales $11,473 $12,303 $12,188
Operating profit 1,433 1,476 1,221
Backlog at year-end 27,200 26,300 26,900
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