spacetoday.net: Lockheed Martin reports increased space sales in 2002

Posted: Mon, Jan 27, 2003, 11:41 PM ET (0441 GMT)

Lockheed Martin's space systems unit reported increased sales and profits in 2002 over 2001, the company announced last week. The Space Systems unit reported net sales of $7.4 billion in 2002, up from $6.8 billion in 2001; profits in 2002 were $443 million, compared to $360 million in 2001. The company said that sales in both commercial and government business rose in 2002: satellite and ground systems programs accounted for the government increase, and an uptick in launch activity aided the commercial sector. The company did admit that the additional commercial launches in 2002 were less profitable because of "industry-wide oversupply and deterioration of pricing in the commercial launch market." In addition, the company recorded a $35 million charge in the fourth quarter of 2002 for "launch vehicle contract settlement costs" as well as $60 million in charges for "marketing and pricing pressures" earlier in the year. The company also took a $112 million charge for advances paid to Russian manufacturers for prepaid Proton launches.