US defense contractor Lockheed Martin has released its second-quarter and half-year results, showing accelerated growth in earnings and revenue for its two technology divisions, Integrated Systems & Solutions, and Information & Technology Services, as a result of the ongoing US government investment in homeland security and defense.
Sales for IS&S grew 19% to $963m over the quarter, and 18% to $1.8bn for the six months ended June 30, with operating profit growing 21% over the quarter and 216% for the year to $81m and $161m respectively. Sales increases were primarily attributable to a higher volume of intelligence, defense and information assurance activities, over both the quarter and the year.
ITS sales grew by 19% to $917m for the quarter, and 21% to $7.8bn for the first half, with operating profit increased up 39% to $71m and 32% to $131m for the first half. The division’s sales increase included the net impact of the corporation’s acquisition of the ACS federal government IT business and the related sale of its commercial technology operations in August 2003. As in the full-year 2003 results, the ACS acquisitions’ effect on sales was partially offset by declines in Nasa program sales, according to Lockheed Martin.