Lockheed Martin 2007 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2007 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 118

  • 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
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118

LOCKHEED MARTIN CORPORATION 2007 ANNUAL REPORT
2
A STRONG FINANCIAL YEAR
As refl ected in these pages, 2007 was another
strong year for Lockheed Martin as we recorded $41.9
billion in sales, and grew our earnings per share for
the sixth consecutive year at a double-digit rate, from
$5.80 in 2006 to $7.10 in 2007.
One of the pillars of our strategy of disciplined
growth is balanced cash deployment. Lockheed Martin
closed the year with its twentieth consecutive quarter
of positive cash from operations and generated a record
$4.2 billion in operating cash for the year. In 2007, we
paid dividends totaling $615 million and repurchased
$2.1 billion of stock.
From 2001 to 2007, we generated more than
$20 billion in cash from operations, in part, due to
our rigorous cash management initiatives. This has
enabled us to return value to shareholders through
both dividends and share repurchases, and to remain
positioned to deploy cash for selected acquisitions. For
the fi fth year in a row, we have increased our dividend
payment at a double-digit rate.
DISCIPLINED GROWTH
Lockheed Martin has demonstrated the value of
acquisitions that add key capabilities, technologies, and
customers to our portfolio. Last year was no exception
as we closed three acquisitions that should continue to
aid us in future growth.
In 2007, we completed the acquisition of
Management Systems Designers Incorporated,
a provider of information technology to Federal
government customers such as the National Institutes
of Health, where Management Systems Designers
has successful client relationships spanning more
than 20 years. Other customers include the Internal
Revenue Service, Department of Homeland Security,
Department of Defense and intelligence agencies.
We acquired 3DSolve Inc., a privately-held
company that creates simulation-based learning tools
for government, military and corporate customers.
3DSolve complements and reinforces Lockheed
Martin’s initiatives in the training and simulation
arena. In December, PercepTek, Inc., a Colorado-based
provider of advanced software technologies for
applications in unmanned ground and aerial vehicles,
joined the Lockheed Martin team.
Recent acquisitions in 2006, such as Savi
Technologies Inc. and Pacifi c Architects and
Engineers, Inc. (PAE) have positioned Lockheed
Martin to compete for new opportunities – particularly
internationally – in logistics, cargo tracking, port
security, and infrastructure protection.