Lockheed Martin 2013 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2013 Lockheed Martin annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 110

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110

lockheed MARtin coRpoRAtion II
Creating Value for Our Stockholders
In this time of budget constraints and changing market
dynamics, we know the importance of creating value for
you, our stockholders, by improving protability and
generating strong returns and cash.
Our stock closed the year at $148.66 per share, up from
$92.29 per share at the close of 2012 — a 61 percent
increase. In total, we generated a 68 percent total
stockholder return, a result of continued outstanding
nancial performance and a strong dividend yield.
Financial highlights include:
• Sales of $45.4 billion, down 4 percent versus 2012.
• Record segment operating prot of $5.8 billion.
• Record segment margin of 12.7 percent.
• Record diluted earnings per share from continuing
operations of $9.04.
• Record backlog of $82.6 billion.
• Net earnings from continuing operations increased
7 percent to about $3.0 billion.
• Cash from operations of $4.5 billion, after making
pension contributions of $2.25 billion.
Cash generation is built into our operating discipline,
and we used that cash to deliver value to you while
investing in our future. We continued to exceed our
commitment of returning at least 50 percent of free
cash ow to our stockholders. We paid $1.5 billion in
dividends — 2013 was our eleventh year in a row of
a double-digit per share dividend increase. We also
repurchased 16.2 million shares of stock for
$1.8 billion. In total, we returned almost 90 percent
of free cash ow to stockholders. At the same time,
we invested $836 million into our business in capital
expenditures, improving the quality and efciency of
our operations.
Delivering for Our Customers
We were encouraged to see Congress pass a two-year
budget agreement in December. The stability created
by this agreement will improve our ability to plan for
the future and is a welcome step toward a long-term
solution to our nation’s budgetary challenges.
We’re committed to supporting our customers by
meeting our commitments, driving affordability and
improving our agility and responsiveness. Our portfolio
is strategically aligned with the technologies and
services our customers want — both now and in the
future. As the global security landscape evolves, we
believe that the need for powerful, exible systems like
the F-35 Lightning II, Littoral Combat Ship, integrated
missile defense, information technology and advanced
satellites will grow. By coupling superior performance
with a portfolio aligned to our customers’ needs, we
believe that we’re positioned to meet the demands of
customers around the globe.
Across our portfolio, we delivered many key
achievements in 2013:
F-35 Lightning II: 2013 was another year of
accelerating progress on our 5th generation, multirole,
multi-variant, stealth ghter. The F-35 achieved
numerous milestones this year:
• The F-35A completed its rst in-ight missile launch.
• The F-35B, Short Take-off Vertical Landing
(STOVL) variant completed its rst vertical take-off,
rst vertical night landing, and rst vertical night
landing at sea on the USS Wasp.
• The F-35C carrier variant completed its rst in-ight
dual refueling, where two ghters were refueled
simultaneously by a Lockheed Martin KC-130
Hercules.
• The Netherlands selected the F-35 as the ofcial
replacement for its eet of F-16s.
• We celebrated the production of the 100th F-35.
Lockheed Martin Chairman, President and CEO Marillyn Hewson