1995 Annual Report - Lockheed Martin

dispensers for fighter and bomber aircraft. The U.S. Navy chose the Low Altitude Navigation& Targeting Infrared for Night system (LANTIRN) for the F-14 Tomcat as part of theservice's Precision Strike Program. Electronics & Missiles also won its third contract under theJoint Advanced Strike Technology (JAST) program, a U.S. Navy/Air Force initiative to developadvanced technologies for a family of fighter aircraft in the next century.Lockheed Martin Defense Systems won a contract to perform transmission design workfor the Crusader program, the U.S. Army's advanced field artillery system. Lockheed MartinCommunications Systems won new business in the electronic key management systems area andwas chosen to develop the next-generation digital secure terminal equipment (STE), whichis designed to provide secure digital communications capability to military and civil governmentagencies into the next century. Lockheed Martin Canada leads a team that won the CanadianArmy Electronic Warfare Control & Analysis Centre, the first in the Army's series of tacticalinformation management programs.Electronics invested in three new operations to strengthen and expand business opportunities.Lockheed Martin acquired from GE Aircraft Engines its engine controls manufacturing andservice business in Fort Wayne, Indiana. Combining the Fort Wayne operation with LockheedMartin Control Systems in Binghamton, New York, creates a world-class organization specializingin design, development, production and service of advanced electronic engine controls, as well asa wide range of controls for other aircraft and industrial applications. Defense Systems formed AVTechnology, LLC, which will supply turret systems and light armored combat vehicles to theglobal defense marketplace. Lockheed Martin has taken an 80 percent interest in the new company.Ocean, Radar & Sensor Systems continued to diversify beyond traditional product offeringswith the purchase of ERAAM, a French firm specializing in the design and development of stateof-the-artsafety and traffic management systems.In 1995, Electronics also initiated consolidation plans to reduce costs and strengthencompetitiveness. Those actions, which will eliminate 2.1 million square feet of excess capacityand reduce employment by roughly nine percent, are expected to be completed in 1996.Electronics also is leading a corporate-wide effort to leverage the combined volume of procurementrequirements of heritage Lockheed and Martin Marietta, an initiative that is expectedto generate more than $50 million in annual savings on the purchase of direct commodities.These plans fulfill the Electronics Sector's commitment to customers to aggressively leveragethe strengths of the new Lockheed Martin to lower costs and improve efficiency.