New Programs Boost Lockheed’s Net 31% in ’84

Propelled by a handful of new multibillion-dollar government programs, Lockheed Corp. on Monday reported a 31% surge in profits and a 24.6% increase in sales in 1984, the third year in a row that the aerospace firm has posted record earnings.

The Burbank-based company earned $344 million on sales of $8.1 billion in 1984, up from profits of $263 million on sales of $6.5 billion the year earlier.

Lockheed Chairman Roy Anderson said the increase in profits was attributable to new programs, including the Trident II nuclear missile, the C-5B cargo jet, the Milstar defense communications satellite and the space shuttle ground-processing business.

The new business significantly contributed to Lockheed’s large and growing backlog, which ended 1984 at $22.8 billion (including funded and unfunded government business), or almost three years of sales at 1984 levels.

The company said it signed a Navy contract to begin full-scale development of the Trident II missile, a program that is expected to generate business through the rest of this century. It also booked orders for 48 C-130s, a profitable cargo aircraft.

“We have some major programs that are taking hold and showing influence,” said Vincent Marafino, Lockheed’s chief financial officer, in a telephone interview. “1985 ought to be a better year than 1984.”

In the fourth quarter, Lockheed earned $108.6 million on sales of $2.54 billion, up from profits of $83.6 million on sales of $1.89 billion the year earlier.

Lockheed continued to strengthen its balance sheet during 1984, adding $326 million in equity to close the year at $1.1 billion in equity, an increase of 28% from the year earlier.

Marafino said that equity represents about 73% of total capitalization and is close to the company’s target.

In June, 1984, the firm also resumed paying regular quarterly dividends for the first time since 1969, when the company entered a financial crisis that took it to the brink of insolvency.