LMT » Topics » 2006 OUTLOOK

This excerpt taken from the LMT 8-K filed Apr 25, 2006.

2006 OUTLOOK

(In millions, except per share data)

 

     2006 Projections
     Current Update   January 2006

Net sales

   $38,000 - $39,500   $38,000 - $39,500
        

Operating profit:

    

Segment operating profit

   $3,625 - $3,725   $3,550 - $3,675

Unallocated corporate expense, net:

    

FAS/CAS pension adjustment

   approx. (275)   approx. (285)

Unusual items

   approx. 150   approx. 95

Stock compensation expense

   approx. (110)   approx. (100)

Other

   5 – 30   15 – 40
        
   $3,395 - $3,520   $3,275 - $3,425
        

Diluted earnings per share

   $4.65 - $4.85   $4.50 - $4.75

Cash from operations

   > $3,400   > $3,300

ROIC 1

   > 14.8%   > 14.5%

1 A summary table showing the calculation of ROIC is displayed at the end of this release.

 

2


The increase in projected 2006 diluted earnings per share is driven by operational performance improvements, and a pre-tax gain of approximately $55 million ($36 million after-tax or $0.08 per share) associated with the Corporation’s sale of 8.7 million shares of Inmarsat stock during March. Our prior earnings per share outlook had incorporated a pre-tax gain of approximately $72 million ($47 million after-tax or $0.11 per share) associated with the sale of 12.3 million shares of Inmarsat stock during January, and a pre-tax gain of approximately $23 million ($15 million after-tax or $0.03 per share) associated with the receipt of proceeds from the sale of the assets of Space Imaging, LLC, which also occurred in January.

It is the Corporation’s practice not to incorporate adjustments to its outlook and projections for proposed acquisitions, divestitures, joint ventures, or other unusual activities until such transactions have been consummated.

This excerpt taken from the LMT 8-K filed Jan 26, 2006.

OUTLOOK

 

The following tables and other sections of this press release contain forward-looking statements, which are based on the Corporation’s current expectations. Actual results may differ materially from those projected. See the “Forward-Looking Statements” discussion contained in this press release.

 

2006 OUTLOOK


   2006 Projections

(In millions, except per share data)

 

   Current Update

  October 2005

Net sales

   $ 38,000 - $39,500   $ 38,000 - $39,500
    

 

Operating profit:

            

Segment operating profit

     $3,550 - $3,675     $3,500 - $3,650

Unallocated corporate expense, net:

            

FAS/CAS pension adjustment

     approx. (285)     approx. (450)

Unusual items

     approx. 95    

Stock compensation expense

     approx. (100)     approx. (100)

Other

     15 – 40     25 – 50
    

 

       $3,275 - $3,425     $2,975 - $3,150
    

 

Diluted earnings per share

     $4.50 - $4.75     $4.00 - $4.25

Cash from operations

     > $3,300     At least $3,200

 

2


The increase in projected 2006 diluted earnings per share is driven by:

 

    operational performance improvements primarily in our Aeronautics segment;

 

    a reduction in the FAS/CAS pension expense adjustment;

 

    unusual gains from the January 2006 sale of Inmarsat stock and the assets of Space Imaging LLC; and

 

    a reduction in shares outstanding as a result of continued share repurchase activity in 2005.

 

The reduction in the FAS/CAS pension adjustment results from using actual data as of the year-end measurement date compared to the estimates utilized in our 2006 outlook as disclosed in our earnings news release issued October 25, 2005. These changes included:

 

    actual 2005 trust fund performance that exceeded the 5.5% return previously assumed;

 

    the benefit of pre-funding various pension trusts during the fourth quarter of 2005;

 

    selection of a 5.625% discount rate (versus the 5.5% previously assumed); and

 

    a reduction to 5.0% in the assumed rates of increase in future compensation levels.

 

In January 2006, the Corporation completed a sale of approximately 12 million shares of Inmarsat stock and received proceeds from the sale of the assets of Space Imaging LLC. These transactions resulted in a pre-tax gain of approximately $95 million (after-tax approximately $0.14 per share) and will be reflected in first quarter 2006 results.

 

It is the Corporation’s practice not to incorporate adjustments to its outlook and projections for proposed acquisitions, divestitures or other unusual activities until such transactions have been consummated.

 

The projected 2006 operating profit includes estimated stock option expense as a result of the Corporation adopting FAS 123R “Share-Based Payment” prospectively on January 1, 2006. The projected 2006 stock compensation expense includes both stock options and grants of other stock-based incentive awards.

 

3


This excerpt taken from the LMT 8-K filed Oct 25, 2005.

2006 OUTLOOK

(In millions, except per share data and percentages)

 

     2006 Projection

Net sales

   $ 38,000 - $39,500
    

Operating profit:

      

Segment operating profit

     $3,500 - $3,650

Unallocated corporate expense, net:

      

FAS/CAS pension adjustment

     approx. (450)

Unusual items

     —  

Stock compensation expense

     approx. (100)

Other

     25 – 50
    

       $2,975 - $3,150
    

Diluted earnings per share

     $4.00 - $4.25

Cash from operations

     > $3,200

Return on invested capital (ROIC)*

     > 15.0%

* See “Non-GAAP Performance Measures” on page 11 for ROIC definition and calculation.

 

The outlook for 2006 operating profit and earnings per share assumes that the Corporation’s 2006 non-cash FAS/CAS pension adjustment will be calculated using a discount rate of 5.5%, and the actual return on plan assets in 2005 will be 5.5%. The 2006 non-cash FAS/CAS pension adjustment will not be finalized until year-end, consistent with the Corporation’s pension plan measurement date. The Corporation will update its 2006 outlook, as necessary, when it announces 2005 year-end financial results.

 

The projected 2006 operating profit includes estimated stock option expense as a result of the Corporation adopting FAS 123R “Share-Based Payment” prospectively on January 1, 2006. The projected 2006 stock compensation expense includes a combination of stock options and grants of other stock-based incentive awards.

 

It is the Corporation’s practice not to incorporate adjustments to its outlook and projections for proposed acquisitions, divestitures or other unusual activities until such transactions have been consummated.

 

3


This excerpt taken from the LMT 8-K filed Jul 26, 2005.

  OUTLOOK

 

      

(In millions, except per share data)


   2005 Outlook

Net sales

   $36,500 - $38,000

Diluted earnings per share

   $3.60 - $3.75

Cash flow from operations

   At least $3,000

Return on invested capital (ROIC)*

   > 14.0%

 

The increase in projected 2005 diluted earnings per share (prior range $3.35-$3.55) reflects improved operating performance in the Systems & IT Group and the Space Systems segment, a slight reduction in both unallocated corporate expense and the effective tax rate, and the benefit of the gain recognized on the Corporation’s Inmarsat investment in the second quarter.

 

It is the Corporation’s practice not to incorporate adjustments to its outlook for proposed acquisitions, pending divestitures or unusual activities until such transactions have been consummated.

 


* See “Non-GAAP Performance Measures” on page 11 for ROIC definition and calculation.

 

2


This excerpt taken from the LMT 8-K filed Apr 26, 2005.

OUTLOOK

(In millions, except per share data)

 

     2005 Projections

     Current

   Prior

Net sales

   $36,500 -$38,000    $36,000 -$37,500

Diluted earnings per share

   $3.35 - $3.55    $3.05 - $3.30

Cash flow from operations

   At least $3,000    At least $3,000

 

The outlook for 2005 reflects improved operating performance primarily in the Space Systems segment, the expected accretion resulting from completing the acquisitions of The SYTEX Group, Inc. and STASYS Limited during the first quarter, the benefit of first quarter unusual items, and the removal of estimated stock option expense as a result of deferring FAS 123R adoption until January 1, 2006.

 

It is the Corporation’s practice not to incorporate adjustments to its outlook and projections for proposed acquisitions, divestitures or other unusual activities until such transactions have been consummated.

 

3


This excerpt taken from the LMT 8-K filed Jan 27, 2005.

OUTLOOK

(In millions, except per share data)

 

     2005 Projection

Net sales

   $36,000 - $37,500

Diluted earnings per share

   $3.05 - $3.30

Cash from operations

   At least $3,000

 

The outlook for 2005 reflects improved operating performance and increased volume related to recent new business wins, the ongoing benefit of early retirement of debt during the fourth quarter of 2004, offset by an increase in the FAS/CAS pension adjustment as a result of lowering the discount rate used in calculating FAS 87 expense to 5.75%, and inclusion of estimated stock option expense as a result of adopting FAS 123R “Share-Based Payment” prospectively on July 1, 2005.

 

It is the Corporation’s practice not to incorporate adjustments to its outlook and projections for proposed acquisitions, divestitures or other unusual activities until such transactions have been consummated.

 

 

2


Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki