Q1 2014 Earnings Call Transcript

Transcript Call Date 04/22/2014

Operator: Good day, and welcome everyone to the Lockheed Martin First Quarter 2014 Earnings Results Conference Call. Today's call is being recorded.

At this time, for opening remarks and introductions, I would like to turn the call over to Mr. Jerry Kircher, Vice President of Investor Relations. Please go ahead, sir.

Jerry F. Kircher, III - VP, IR: Thank you, Stephanie and good morning everyone. I'd like to welcome you to our first quarter 2014 earnings conference call. Joining me today on the call are Marillyn Hewson, our Chairman, President and Chief Executive Officer; and Bruce Tanner, our Executive Vice President and Chief Financial Officer.

Statements made in today's call that are not historical fact are considered forward-looking statements and are made pursuant to the Safe Harbor provisions of federal securities law. Actual results may differ. Please see today's press release and our SEC filings for a description of some of the factors that may cause actual results to vary materially from anticipated results. We have posted charts on our website today that we plan to address during the call to supplement our comments. Please access our website at www.lockheedmartin.com, and click on the Investor Relations link to view and follow the charts.

With that, I'd like to turn the call over to Marillyn.

Marillyn A. Hewson - Chairman, President and CEO: Thanks, Jerry. Good morning everyone and thank you for joining the call today. We're pleased to have you with us to review our first quarter results. As today's release details, we had an exceptionally strong quarter, financially and operationally. The Corporation continued to operate at a very high level in returning value to stockholders, while delivering critical solutions to our customers.

Our Lockheed Martin team delivered broad-based results across the Corporation and I'm extraordinarily proud of their focus and efforts. I want to highlight a few key achievements in the quarter, and then Bruce will follow my remarks and cover the balance of the financial metrics in more detail.

Financial results for the first quarter of 2014 were higher in almost metric than the first quarter last year; other than a slight decline in sales. While sales decreased in the quarter, they were better than our plan and we remain on track to achieve our full year sales guidance. Noteworthy financial accomplishments, we're securing new order bookings significantly above last year's level, and a direct reflection of our portfolio alignment with customer requirements. This strong program alignment is essential as customers allocate resources in today's constrained budget environment. Beyond our solid order bookings, net earnings and earnings per share each increased over 20%, while segment operating margin matched the high point in our corporate history at 13.4%.

Through our continuous focus on cash generation, we delivered over $2 billion in cash from operations in the quarter. Strong and growing cash generation is a hallmark of our corporation and a key differentiator in returning value to stockholders, while enabling continued investments in the future of our business.

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