[Satellite TODAY Insider 01-28-11] Boeing and Lockheed Martin reported similar 2010 end-year results, which showed both major U.S. satellite manufacturers struggling in their space business units.
    Lockheed Martin Space Systems’ 2010 fourth quarter net sales fell 13 percent compared to 2009. The company’s space transportation business took a $233 million hit in revenues due to lower volume on commercial launch vehicle activities, the Orion program and the space shuttle external tank program. 
    Sales declines in all three lines of the division in the final three months of 2010 resulted in an overall 5 percent drop in net sales for the full year. The company’s satellite division saw an $82 million decline in revenues in the fourth quarter that it attributed to lower volume in government satellite activities, which was partially offset by higher volume on commercial satellites. The company delivered a single commercial satellite in the fourth quarter and performed no commercial launches.
    Lockheed’s satellite division reported a 7 percent decrease ($17 million) in operating profit due to lower volume and a decline in the level of favorable performance adjustments on government satellite programs in 2010. Full-year growth in Lockheed Martin’s space transportation operating profit was more than offset by a decline in satellites operating profit.
    Despite the poor performance in space systems, Lockheed Martin Corp. reported an increase in fourth quarter 2010 net sales at $12.8 billion, compared to $12.2 billion in 2009. “For the year, sales and backlog grew. Combined with strong cash flow, I believe it was very solid performance in a very demanding year. Looking ahead, our employees are focused on providing increasingly affordable solutions to our customers and continuing strong financial results for our shareholders,” Lockheed Martin Chairman and CEO Bob Stevens said in a statement.
    Boeing’s Defense, Space and Security division revenue also declined by 5 percent for the year to $31.9 billion due to on lower volume in network and space systems and a 4 percent drop in military aircraft revenue to $8.2 billion.
    Boeing Space System’s 2010 fourth quarter revenue essentially was unchanged at $2.4 billion, while the division’s operating margin grew to 9 percent on improved performance in Space and Intelligence Systems. The improvement was driven by the company’s contract with the Mexican government for three geomobile satellites and the fact that the completion of the first flight of the X-37B Orbital Test Vehicle.
    Boeing’s Defense, Space and Security 2010 full-year backlog increased slightly to  $65.2 billion — about two times the unit’s expected 2011 revenue. 
Boeing reported a solid overall fourth-quarter 2010 net income of $1.2 billion on revenues of $16.6 billion, but those results mostly reflected a favorable tax settlement and a one-time contribution to Boeing’s charitable trust. 
    “We’re entering 2011 well-positioned for growth, with a large order book, increasing global demand for commercial airplanes, greater clarity around our domestic defense outlook, and significant international defense sales opportunities,” Boeing Chairman, President and CEO Jim McNerney said in a statement.

Related Stories-

Raytheon Advances GPS OCX Program; Set to Open Collaboration Center    Satellite Today   January 20, 2011
[Satellite TODAY Insider 01-20-11] Raytheon will open in February its GPS Collaboration Center in El Segundo, Calif., which aims to allow U.S. Air Force Space and Missile Systems personnel to conduct simulated interactions with the GPS Operational…

Boeing Issues Multiple 702HP Satellite Component Awards    Satellite Today   January 12, 2011
[Satellite TODAY Insider 01-12-11] Boeing Space and Intelligence Systems selected Northrop Grumman s scalable Space Inertial Reference Unit (SIRU) as its satellite platforms inertial reference unit, Northrop Grumman announced Jan. 11.

U.S. Military Satellite Sector Prepares for Gates’ Five-Year Budget Plan   Satellite Today   January 11, 2011
There s a common misconception in the public sector that U.S. Defense Secretary Robert Gates plan to cut military spending by $553 billion in 2012 is a decrease in the Pentagon s budget. Instead, the U.S. Department of Defense will see an…