Defense conglomerate and Sikorsky parent company Lockheed Martin first-quarter sales increased to $11.1 billion from $10.4 billion from the year-ago period, but earnings declined by $43 million year-over-year, to $763 million, it noted in its earnings release today. While net sales in the company’s Rotary and Missions Systems (RMS) segment increased to $3.101 billion, up fractionally from $3.04 billion a year ago, both operating profit and operating margin were down sharply, decreasing from $229 million to $108 million and from 7.6 percent to 3.5 percent, respectively.
According to Lockheed, “RMS’s net sales in the first quarter increased $97 million, or 3 percent, compared to the same period in 2016. The increase was primarily attributable to higher net sales of about $280 million due to certain adjustments recorded in 2016 required to account for the November 6, 2015 acquisition of Sikorsky. This increase was partially offset by a net decrease of approximately $100 million primarily driven by fewer deliveries of helicopters; and a decrease of $65 million” in other programs.
Sikorsky's civil helicopter sales have been hit particularly hard by the global energy slump; last year the company shipped just 12 civil helicopters, according to data from the General Aviation Manufacturers Association.