Lockheed Martin Corp (LMT) has reported a 1.72 percent rise in profit for the quarter ended Sep. 28, 2014. The company has earned $888 million, or $2.76 a share in the quarter, compared with $873 million, or $2.66 a share for the same period last year.

Revenue during the quarter went down marginally by 2.05 percent to $11,114 million from $11,347 million in the previous year period. Gross margin for the quarter expanded 104 basis points over the previous year period to 11.47 percent. Total expenses were 87.48 percent of quarterly revenues, down from 88.95 percent for the same period last year. This has led to an improvement of 147 basis points in operating margin to 12.52 percent.

Operating income for the quarter was $1,392 million, compared with $1,254 million in the previous year period.

"Although we continue to face global economic challenges, our program and operational performance this quarter resulted in increased earnings per share and strong cash generation," said Chairman, President and CEO Marillyn Hewson. "As we look ahead to 2015, we will remain focused on delivering for our customers, returning value to our shareholders, advancing our technologies and investing in our people."

Cash Flow

Lockheed Martin Corp has generated cash of $4,067 million from operating activities during the nine month period, up 12.72 percent or $459 million, when compared with the last year period.

The company has spent $1,064 million cash to meet investing activities during the nine month period as against cash outgo of $784 million in the last year period. It has incurred net capital expenditure of $456 million on net basis during the nine month period, down 7.13 percent or $35 million from year ago period.

Free cash flow was 88.79 percent of operating cash flow for the nine month period, compared with 86.39 percent in the last year period.

The company has spent $2,657 million cash to carry out financing activities during the nine month period as against cash outgo of $2,061 million in the last year period.
Cash and cash equivalents stood at $2,963 million as on Sep. 28, 2014, up 11.35 percent or $302 million from $2,661 million on Sep. 29, 2013.

Working Capital

Lockheed Martin Corp has witnessed a decline in the working capital over the last year. It stood at $1,551 million as at Sep. 28, 2014, down 15.06 percent or $275 million from $1,826 million on Sep. 29, 2013. Current ratio was at 1.13 as on Sep. 28, 2014, down from 1.15 on Sep. 29, 2013.

Cash conversion cycle (CCC) has decreased to 59 days for the quarter from 63 days for the last year period. Days sales outstanding went down to 51 days for the quarter compared with 55 days for the same period last year.

Days inventory outstanding was almost stable at 26 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 18 days for the quarter, when compared with the previous year period.