Lockheed Martin 2013 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 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 IV
And with a growing international backlog, we are
well positioned with respect to our goal of growing
international sales over the next few years to over
20 percent of total revenue.
To accelerate the growth of our international business,
in July we announced the formation of Lockheed
Martin International, a new organization responsible for
growing our global business.
Our path to a more robust global portfolio includes:
• Strengthening partnerships with customers, suppliers
and educational institutions, so we can offer more
value to in-country economies, industries and
citizens.
• Drawing on the depth and breadth of our portfolio
to create enterprise-wide offerings that integrate the
best of the technologies, services and expertise that
Lockheed Martin has to offer.
• Sharpening and unifying our focus, resources and
strategies in each international market through the
Lockheed Martin International team.
We took proactive steps in 2013 to expand our
international presence. We acquired the Amor Group,
a United Kingdom-based company that expands our
capabilities in information technology solutions for
the energy, transport and public services sectors. And
we won a number of international contracts, including
the renewal of our air trafc control work in the UK,
C-130Js for Saudi Arabia, IT networks for the UK,
Joint Air to Surface Standoff Missiles in Finland, and
helicopter targeting and radar systems for the Republic
of Korea. Our F-35 nal assembly and checkout facility
is up and running in Italy. We believe that these strategic
moves — coupled with our already strong portfolio —
will lead to robust international growth in the future.
Improving our Affordability: As our customers face
increasingly complex mission demands, we are
committed to helping them do more with less. That
means nding ways to run our operations more
efciently and to reduce costs. In 2013, we made
difcult decisions and took action to ensure we remain
competitive in a dynamic marketplace.
In November we announced plans to close our
operations in Newtown, Pennsylvania; Akron, Ohio;
Goodyear, Arizona; and Horizon City, Texas. We will
also close four buildings on our Sunnyvale, California,
campus. The important work being performed in these
facilities will transition to other Lockheed Martin
facilities, with closures expected to be complete by
mid-2015.
These decisions followed a review of our current
facility capacity and future workload projections and
are part of our initiative to reduce costs and make our
products and services more affordable. Since 2008,
we’ve reduced overhead costs, cut capital expenses,
removed 7.2 million square feet of facility space, and
made the difcult decision to reduce our workforce
from 146,000 employees to approximately 115,000. The
actions announced in November will further streamline
our facility footprint by nearly 2.5 million square feet
and lower our overhead costs.
Closing facilities and reducing our workforce of
dedicated employees are among the most difcult
decisions we make. We took these actions because we
believe they will make Lockheed Martin a stronger,
leaner, healthier company — one that is better
positioned to serve our customers and compete both
domestically and internationally.
Innovating for Growth: We continued to push the
envelope to drive the development of new technologies,
make our existing products more relevant and shape the
future. In 2013 we increased our independent research
and development investment by 13 percent to
$697 million as part of our commitment to innovating
for growth.
We’re bringing next-generation innovation to directed
energy weapon systems. We successfully demonstrated
a prototype laser system that can defeat incoming
rockets, unmanned aircraft in ight, as well as small
boats. The results of 2013 testing of the Area Defense
Anti-Munitions system included destroying eight
small free-ying rockets at a range of just under a mile.
High-energy lasers are a complement to traditional,
missile intercept systems and have unique attributes,
including very low cost-per-engagement and minimal
collateral damage.
Two of our business segments collaborated
to demonstrate that one operator can y and
control multiple unmanned aerial systems (UAS)
simultaneously. We integrated the prototype Unmanned
Carrier Launched Airborne Surveillance and Strike
vehicle from Aeronautics with a command and control
system from Information Systems & Global Solutions.
Our systems worked in concert with Navy systems
to provide UAS operators with richer intelligence
and a more integrated picture of the battleeld. This