1995 Annual Report - Lockheed Martin

Mission Success"Mission Success" expresses Lockheed Martin's commitment to achieve superior performanceand total customer satisfaction in every goal we set and every task we undertake. A key measureof Lockheed Martin's mission success during 1995 was our record for meeting major programmilestones and commitments. Just in terms of strategic and tactical missile firings, space vehiclelaunches, satellites delivered on orbit, aircraft first flights, and Space Shuttle missions —which totaled 215 during the year — the men and women of Lockheed Martin achieved anextraordinary 96 percent success rate. This outstanding performance was reflected in excellentcustomer award fee ratings.In our first year of operation, we also dealt with a few disappointments. The first test flightof our new small launch vehicle was unsuccessful, and we lost some competitions. We gainedvaluable insights for the future from these experiences and redoubled our commitment to achieve100 percent mission success as we go forward.Competitive PerformanceIn 1995, Lockheed Martin turned in an impressive record of new business awards. Our win ratewas over 60 percent of the number of major competitive bids pursued and just under 60 percentof the dollar value bid. This is a record which far surpasses industry averages. Capturing vital newbusiness across the spectrum of our products and services, for both government and commercialcustomers worldwide, demonstrates Lockheed Martin's broad technological capabilities andcompetitive strengths. Significantly, several major new business awards resulted from synergiesand system solutions realized from our merger.The Operating Highlights portion of our report details Lockheed Martin's numerous specificbusiness achievements throughout the year. From a broad strategic viewpoint, we:• Positioned our launch vehicle, satellite and space vehicle ground operations businesses toprovide customers with total system solutions, unmatched by our competitors.• Reinforced our position in U.S. military aircraft and continued to expand internationally.• Substantially strengthened our position in growing information systems businesses, bothgovernment and commercial, with advanced technology products and services.• Improved our competitive position in defense electronics businesses and created market demandfor next generation systems.• Maintained our role as the Department of Energy's single largest services provider, whilegaining greater presence in the environmental remediation area.• Enhanced our international business base, which accounts for more than 15 percent of total sales,through synergies, strong in-country presence and relationships with international partners.ConsolidationOn June 26, just three months after our merger and on our original schedule, we announced acorporate-wide consolidation plan, which carries out Lockheed Martin's commitment to maximizeefficiencies, improve global competitiveness, expand long-term employment prospects andenhance shareholder value. By year end, we had met all key decision dates; all consolidation