Lockheed Martin Corporation [NYSE: LMT] today reported fourth quarter 2020 net sales of $17.0 billion, compared to $15.9 billion in the fourth quarter of 2019. Net earnings from continuing operations in the fourth quarter of 2020 were $1.8 billion, or $6.38 per share, compared to $1.5 billion, or $5.29 per share, in the fourth quarter of 2019. Cash from operations in the fourth quarter of 2020 was $1.8 billion, compared to $1.5 billion in the fourth quarter of 2019. Cash from operations was after discretionary pension contributions of $1.0 billion in each of the fourth quarters of 2020 and 2019.
As previously announced, on Dec. 20, 2020, the corporation entered into an agreement to acquire Aerojet Rocketdyne Holdings, Inc. (Aerojet Rocketdyne) for $56 per share in cash, which is expected to be reduced to $51 per share after Aerojet Rocketdyne pays a pre-closing special dividend to its stockholders on March 24, 2021.
This represents a post-dividend equity value of approximately $4.6 billion, on a fully diluted asconverted basis, and a transaction value of approximately $4.4 billion after the assumption of Aerojet Rocketdyne’s projected net cash balance. The corporation expects to finance the acquisition through a combination of cash on hand and new debt issuances.
The acquisition provides the corporation the opportunity to integrate Aerojet Rocketdyne’s propulsion systems more effectively into its products, generate cost and revenue synergies, and improve efficiencies in Aerojet Rocketdyne’s production operations.
The transaction will also allow customers incorporating Aerojet Rocketdyne products to offer more timely, innovative and affordable solutions, and reduce the prices paid by the U.S. Government for systems it buys.
The transaction is expected to close in the second half of 2021 and is subject to the satisfaction of customary closing conditions, including regulatory approvals and approval by Aerojet Rocketdyne’s stockholders.
Maya Grinberg is a careers Reporter for Tech News vision make it. Prior to joining Tech News Vision, she worked as a fiction stories and a freelancer for magazine, where she eventually worked her way up to careers editor. During this time, she created daily content for own website and worked with the research team to create content. she developed some own Newswebsite.