{"id":34141,"date":"2020-10-20T19:00:00","date_gmt":"2020-10-20T19:00:00","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2020\/10\/20\/lockheed-sees-earnings-growth-in-space-business\/"},"modified":"2026-08-07T22:48:41","modified_gmt":"2026-08-07T22:48:41","slug":"lockheed-sees-earnings-growth-in-space-business","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/industry\/2020\/10\/20\/lockheed-sees-earnings-growth-in-space-business\/","title":{"rendered":"In space business, Lockheed sees problems and promise"},"content":{"rendered":"\n

WASHINGTON \u2015 Space emerged as Lockheed Martin\u2019s business area with the highest net growth, driven by hypersonic weapons programs<\/a> and an anticipated next-generation interceptor<\/a> award, CEO James Taiclet said Tuesday on the company\u2019s third-quarter earnings call.<\/p>\n\n\n\n

But Lockheed reported that Space\u2019s operating profit in the third quarter of 2020 decreased $61 million, or 20 percent, compared to the same period in 2019. There was a decrease there of $50 million due to lower equity earnings from the corporation\u2019s investment in United Launch Alliance \u2015 a joint venture with Boeing.<\/p>\n\n\n\n

The space segment\u2019s net sales in the third quarter of 2020 increased $163 million, or 6 percent, compared to the same period in 2019. The segment earned $90 million for government satellite programs due to higher volume (primarily Next Generation Overhead Persistent Infrared satellites), and about $60 million for strategic and missile defense programs due to higher volume (primarily hypersonic development programs).<\/p>\n\n\n\n

\u201cWhen we speak of hypersonics, I think there\u2019s a very big upside there because there\u2019s a very big threat. It\u2019s getting worse out of Russia and China, and the U.S. and its allies are going to have to meet it both on offensive and defensive hypersonic systems,\u201d Taiclet said, adding that classified space systems are a \u201cwide-open field.\u201d<\/p>\n\n\n\n

Taiclet also said he expects the government will work with industry to counter emerging kinetic and non-kinetic threats to space assets, ground stations and the links between them. He pointed to the Space Development Agency\u2019s selection<\/a> of Lockheed, which is one of the firms building its \u201ctransport layer\u201d \u2014 a low-Earth orbit constellation of satellites that can transfer data globally through optical intersatellite links.<\/p>\n\n\n\t