On Jan. 25, defense giant Lockheed Martin (NYSE:LMT) released fourth-quarter earnings for the period ended Dec. 31, 2006.

  • The company's fourth-quarter net sales went up by 6% to $10.8 billion, with increasing revenues across all segments.
  • Operating profit increased across each sector, helping to drive the bottom line. The 32% increase in operating profit from the aeronautics segment led the company to increase operating-profit estimates for 2007.
  • With the formation of the United Launch Alliance joint venture, net sales for 2007 will be reduced by an estimated $800 million.
  • Lockheed Martin is a three-star stock in Motley Fool CAPS, our interactive stock-rating database.

(Figures millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$10,840.0

$10,229.0

6.0%

Net Profit

$729.0

$568.0

28.3%

EPS

$1.68

$1.29

30.2%

Diluted Shares

432.8

439.0

(1.4%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

9.5%

7.1%

2.4

Operating Margin

10.5%

8.7%

1.8

Net Margin

6.7%

5.6%

1.1

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$2,293

$2,673

(14.2%)

Accounts Rec.

$4,601

$4,579

0.5%

Inventory

$1,663

$1,921

(13.4%)



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$2,196

$1,998

9.9%

Long-Term Debt

$4,405

$4,784

(7.9%)



Learn the ways of the balance sheet.

Cash Flow Highlights

FY 2006

FY 2005

Change

Cash From Ops.

$3,783

$3,194

18.4%

Capital Expenditures

$893

$865

3.2%

Free Cash Flow

$2,890

$2,329

24.1%

*Capital expenditures include acquisitions and divestitures made during the year.

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Related Companies:

  • Northrop Grumman (NYSE:NOC)
  • Boeing (NYSE:BA)
  • Raytheon (NYSE:RTN)
  • Honeywell (NYSE:HON)
  • L-3 (NYSE:LLL)

Related Foolishness:

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