Lockheed Martin Emerges as Global Aerospace Giant

In a shocking move, Lockheed Martin, the new entity formed by the merger of Lockheed and Martin Marietta, has become the world's second-largest aerospace company, with combined sales of $22.51 billion in 1993. The merger will enable Lockheed Martin to compete more effectively with foreign companies that benefit from government subsidies. The company's chairman, Daniel Tellep, noted that the new entity will be better equipped to win international sales, which currently account for 18% of its $13 billion total sales. Lockheed Martin's primary focus will be on the Farnborough air show, where it will showcase its C-130J Hercules aircraft and compete for a large RAF order.

Key Takeaways:

• Lockheed Martin, formed by the merger of Lockheed and Martin Marietta, is now the world's second-largest aerospace company, with combined sales of $22.51 billion in 1993.
• The new entity will have a significant presence at the Farnborough air show, competing for a large RAF order for its C-130J Hercules aircraft.
• International sales account for 18% of Lockheed Martin's total sales of $13 billion, a key area of focus for the company.
• Lockheed Martin's chairman, Daniel Tellep, emphasized the company's need to compete more effectively with foreign companies that benefit from government subsidies.
• The merger comes at an uncertain time for American defence contractors, who face cancellation or delay of weapons systems, including the F-22 fighter plane, which is facing several years of delay or pruning.
• The F-22, valued at $71.6 billion, is the largest planned procurement for a single weapons system.
• McDonnell Douglas will also have a significant presence at Farnborough, showcasing its C-17 military cargo plane, F/A18 Hornet US Navy fighter, F-15 Eagle Air Force fighter, and AH-64 Apache attack helicopter.
• The merger announcement has put pressure on European defence companies to pool their resources in joint ventures or outright mergers.
• Boeing, the world's largest aerospace company, will not be exhibiting at Farnborough, but will still hold the top spot with total sales of $25.43 billion in 1993.

Statistics:

• Lockheed Martin's combined sales: $22.51 billion (1993)
• Lockheed Martin's total sales: $13 billion
• International sales account for: 18% of total sales
• Value of the F-22 program: $71.6 billion
• Boeing's total sales: $25.43 billion (1993)

Sources:

• The deal is the biggest defense merger in US history (Mark Tran, 1993)
• Lockheed chairman Daniel Tellep (no specific date mentioned)
• Lockheed Martin's sales figures (no specific date mentioned)
• McDonnell Douglas's aircraft lineup (no specific date mentioned)
• Boeing's total sales (1993)