Numbers Look Good to Lockheed's CEO

In his traditional air show update on Lockheed Martin's financial performance, the company's chairman and CEO Vance Coffman expressed satisfaction with performance in 2000 and the first part of 2001.

"We are doing very well in terms of program and financial performance," he said Sunday evening. All time high results were recorded for orders, backlog and free cash flow last year.

One of his highest priorities has been to reduce company net-debt-to-capital ratio, which has come down substantially in the past months. Debt was cut by $2 billion, Coffman said, bringing debt-to-capital to 54% compared to 64%. That goal was achieved largely through a 32% increase in orders to $37.3 billion; a 23% increase in backlog to $56.4 billion, and free-cash flow of $1.8 billion-each all time highs.

Coffman noted that the F-16 was a particularly strong performer, with 234 aircraft ordered at a value of more than $10 billion.

So far this year, Lockheed Martin says it will have free cash flow of $1.8 billion for a combined 2001 and 2002, which will be much lower than last year. Nevertheless, recurring earnings per share for 2001 should grow 25-30% over 2000, with another 20% increase slated for 2002.

By Robert Wall