Lockheed Martin Corporation (NYSE:LMT) Q4 2014 Earnings Conference Call - Preliminary Transcript

Jan 27, 2015 • 11:00 am ET


Lockheed Martin Corporation (NYSE:LMT) Q4 2014 Earnings Conference Call - Preliminary Transcript


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Good day. And welcome everyone to the Lockheed Martin Fourth Quarter and Full Year 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 Kircher

Thank you, Shannon, and good morning, everyone. I'd like to welcome you to our fourth 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 Hewson

Thanks, Jerry. Good morning, everyone and thank you for joining us on the call today. We hope that your new year is off to a great start.

Let me begin by saying that I am extraordinarily proud of our Lockheed Martin team. We finished another strong year in 2014 achieving excellent financial and program performance. Our performance has the corporation well positioned to continue to deliver value to customers and stockholders in 2015. The daily efforts of our employees are the foundation of our ability to deliver broad-based results across the corporation and I thank them for their ongoing contribution. While Bruce will cover the financial results in detail later on in the call, I want to highlight a few key achievements and strategic items from my perspective as we closed out 2014.

Starting with new business, the corporation continues to be successful in securing new order bookings for both domestic and international customers. In the fourth quarter we achieved a strong 130% book-to-bill ratio for contract awards above sales and finished the year with a backlog of nearly $81 billion. This marks the fourth consecutive year that we have maintained our backlog in excess of $80 billion.

Our new business success is aided by having the best position portfolio of programs in the sector with direct and unique alignment to many of the essential programs identified by both international and domestic customers. These factors have enabled us to build a strong backlog consisting of multiple years of longer cycle production program and provides a strategic differentiation and financial foundation of future work.

I was also pleased that the international content of our backlog grew to more than $20 billion, representing over 25% of our total year-end backlog. The international component has