Lockheed Martin, the aerospace giant with a significant presence in Cobb County, reported its results for both the fourth quarter of 2021, and for the entire year.
The company reported net earnings of $2.0 billion for the fourth quarter of 2021, up from $1.8 billion in the previous year.
Net earnings for the year dropped, however, to $6.3 billion in 2021 as compared to $6.8 billion in 2020.
The company segment with the most impact on Cobb County because of the manufacturing at the Marietta facility, Aeronautics, showed a drop in operating profit from $2,843,000,000 in 2020 to $2,799,000,000 in 2021.
The operating profits from the combined four segments (Aeronautics, Missiles and Fire Control, Rotary and Mission Systems and Space) showed an increase from $7,152,000,000 in 2020 to $7,379,000,000 in 2021.
Here’s an excerpt from the beginning of the press release announcing the results:
BETHESDA, Md., Jan. 25, 2022 /PRNewswire/ — Lockheed Martin Corporation [NYSE: LMT] today reported fourth quarter 2021 net sales of $17.7 billion, compared to $17.0 billion in the fourth quarter of 2020. Net earnings from continuing operations in the fourth quarter of 2021 were $2.0 billion, or $7.47 per share, compared to $1.8 billion, or $6.38 per share, in the fourth quarter of 2020. Cash from operations was $4.3 billion in the fourth quarter of 2021, compared to $1.8 billion in the fourth quarter of 2020. Cash from operations in the fourth quarter of 2020 was after $1.0 billion of discretionary pension contributions.
“We closed the year on a strong note with solid growth in fourth quarter sales, segment operating profit, and earnings per share, while cash exceeded our projections as we delivered on our customer commitments and drove strong execution,” said Lockheed Martin Chairman, President and CEO James Taiclet. “We delivered significant value back to shareholders in 2021, including $7 billion in dividends and share repurchases, and our team continued to provide world-class support to our customers despite the ongoing challenges of the global pandemic. Through our strong balance sheet, we continue to invest in the many emerging growth opportunities ahead – from new aircraft competitions around the world, to our classified portfolio, to solid demand for our signature programs, to emerging technologies like hypersonics. Looking ahead to 2022, we will remain fully dedicated to service to our customers and dynamic and disciplined capital allocation for the benefit of our shareholders.”
Net earnings for the quarter ended Dec. 31, 2021, included net gains of $85 million ($64 million, or $0.23 per share, after-tax) due to increases in the fair value of investments held in the Lockheed Martin Ventures Fund. Net earnings for the year ended Dec. 31, 2021, included a noncash pension settlement charge of $1.7 billion ($1.3 billion, or $4.72 per share, after-tax) associated with the $4.9 billion gross pension liability transfer completed in the third quarter; net gains of $265 million ($199 million, or $0.72 per share, after-tax) due to increases in the fair value of investments held in the Lockheed Martin Ventures Fund; and severance and restructuring charges of $36 million ($28 million, or $0.10 per share, after-tax) announced in the first quarter. Net earnings for the year ended Dec. 31, 2020, included a non-cash impairment charge of $128 million ($96 million, or $0.34 per share, after tax) for an investment in a joint venture; and severance charges of $27 million ($21 million, or $0.08 per share, after-tax).
Lockheed Martin and Cobb County
The Lockheed Martin facility in Marietta has been a major employer in Cobb County since 1951, when the Lockheed Corporation, a predecessor of Lockheed Martin, took over the former site of the WWII Bell Bomber plant.
In response to a request by the Courier for a previous article, the spokesperson for the Marietta operations of the company wrote:
The C-130 remains the largest program at the Marietta site. We are currently building the C-130J Super Hercules and I’ve attached our updated Fast Facts for insights on that program. We’ve produced every production model C-130 at the Marietta site, which means Hercs have been rolling out of Marietta for almost 66 years. It’s staple here in Cobb County! You can learn more about the C-130J in our brochure located here.
We also provide support (i.e., sustainment) for the C-5 Galaxy, which wrapped up a major modification providing 52 C-5s with new engines and avionics, in 2018. We celebrated the C-5’s 50th anniversary in 2018 and expect to see that aircraft in service – thanks to its upgrades and unique hauling capabilities – until 2045. See press release for more information. We also support the P-3 Orion through Marietta-based teams. Additionally, we manufacture F-35 center wings here in Marietta.