The strong second quarter showing by Lockheed Martin Aeronautical Systems isn't likely to be repeated, executive VP Dain Hancock said here Monday.

"A confluence of events" resulted in $1.2 billion in unit revenues, he said. The sale of 80 Block 60 F-16s to the United Arab Emirates, as well as a slew of other orders, contributed to the good result.

Those comments notwithstanding, Hancock said future results will be positive, as recent orders have made for a $15 billion order backlog.

"What that does is stabilize our business base going forward," Hancock said of the quarter. Customers may look forward to lower prices, he indicated, while several other contracts should help Lockheed Martin sustain decent financial performance. Hancock said some $8 billion worth C-5 upgrade work will likely come the company's way in the near future.

"We come to this show with a stronger, more unified aeronautics company," he said.

As part of its activities to improve its financial performance, Hancock said there will be continued "elimination of duplication" at the three operating sites-Fort Worth, Texas, Marietta, Georgia, and Palmdale, California.

Some of that duplication may be customer-driven, however. For example, the U.S. Air Force is considering consolidating Lockheed Martin's portions of F-22 production. The company builds parts for the stealth fighter in Fort Worth and Marietta, where final assembly takes place. Boeing builds F-22 parts in Seattle. Lockheed Martin studied going to one site, but found the substantial up-front investment did not provide the necessary return. But the USAF is examining the issue and may help finance consolidation of sites. Asked whether this experience doesn't steer industry and the Pentagon away from having multiple sites for Joint Strike Fighter production, Hancock indicated that other concerns, such as sustaining the fighter industrial base, may outweigh costs issues.

Lockheed Martin would also like to get in on the emerging Unmanned Combat Air Vehicle market. UCAVs are pilotless, reusable fighter/attack-like aircraft. Boeing and Northrop Grumman are working with the Pentagon's Defense Advanced Research Projects Agency to develop concepts.

"It is an issue for us," Hancock said of his firm's absence from the UCAV scene, although he added, "at this point we're not overly concerned." The aeronautics unit currently is focused on winning the JSF competition, after which efforts to break into the UCAV market may get more attention.

Hancock said his sector is exploring opportunities for maintaining Lockheed Martin's push for more global partnerships. He said mergers in Europe might have helped, because they have created more stable industrial partners with which to deal. But Hancock plans to be careful in striking deals, to make sure they don't undermine his company's financial performance.

By Robert Wall