Lockheed Martin Reports First Quarter 2001 Earnings Per Share of $0.25; Earnings Per Share of $0.23 Excluding Nonrecurring and Unusual Items

* Generates $1.4 Billion of Free Cash Flow



* Reaffirms 2001 Free Cash Flow Guidance of at Least $800 Million;

Free Cash Flow Estimate of at Least $1.8 Billion for the Two Years 2001

And 2002 Combined



* Reaffirms 25 - 30 Percent Increase in 2001 Recurring Earnings Per Share

Outlook From 2000 Results of $1.07; 2002 Earnings Per Share Growth

Of About 20 Percent From 2001



Apr 24, 2001, 01:00 ET from Lockheed Martin Corporation

    BETHESDA, Md., April 24 /PRNewswire Interactive News Release/ -- Lockheed
 Martin Corporation (NYSE:   LMT) today reported first quarter 2001 net earnings
 per diluted share of $0.25, compared to first quarter 2000 net earnings per
 diluted share of $0.14.  Nonrecurring and unusual items increased first
 quarter 2001 results by $7 million, or $0.02 per diluted share, while such
 items contributed $6 million, or $0.02 per diluted share, to first quarter
 2000 results.  Excluding the aforementioned items, comparable first quarter
 earnings per diluted share would have been $0.23 for 2001 and $0.12 for 2000.
     The Corporation also reported it generated approximately $1.4 billion of
 free cash flow in the first quarter of 2001.  First quarter 2001 cash flow
 included a milestone payment related to an international F-16 program of more
 than $450 million after subcontractor payments and other disbursements.  The
 quarter also included pretax proceeds from the sale of surplus real estate of
 approximately $185 million.
     "These results indicate our continuing focus on strong performance for our
 customers and building value for our shareholders," said Chairman and Chief
 Executive Officer Vance Coffman.  "We are building on the solid performance we
 delivered in 2000.  This quarter we met or exceeded our financial expectations
 and are on track to achieve the goals we established for 2001.  We will
 continue to execute our stated management imperatives to achieve our vision to
 be the world's best advanced technology integrator, and in doing so, provide
 significant valuation potential for our shareholders."
     Net sales for the first quarter of 2001 were $5.0 billion, down ten
 percent when compared with first quarter 2000 sales of $5.6 billion.  Due to
 the 2001 schedule of space launches and aircraft deliveries as well as the
 continuation of historical sales trends in the Systems Integration and
 Technology Services business areas, sales and profit are expected to increase
 during the year.
     The Corporation estimates the 2001 distribution of sales to be between 20
 - 25 percent in the second quarter and between 55 - 60 percent in the second
 half of the year.  Sales for the year 2001 are anticipated to be between
 $24.6 - $24.8 billion.
     The Corporation reaffirmed its 2001 earnings per share outlook of a 25 -
 30 percent increase from the 2000 base of $1.07 per diluted share, excluding
 the effects of any nonrecurring and unusual items.  The earnings expectation
 assumes an estimated effective tax rate of 40 percent.  The Corporation
 estimates the quarterly distribution of diluted earnings per share for the
 remainder of 2001 to be approximately 15 - 25 percent for the second quarter,
 20 - 30 percent for the third quarter and 35 - 45 percent for the fourth
 quarter.
     The Corporation also reaffirmed its 2002 earnings per share outlook of a
 20 percent increase from the 2001 base.  This projection is based, among other
 factors, upon an estimated effective tax rate of 38 percent.
     During the first quarter, the Corporation announced that Telenor of Norway
 will acquire Lockheed Martin Global Telecommunications' Mobile Communications
 operations for $116.5 million in cash.  Also during the quarter, the
 Corporation increased its ownership in INTELSAT from 22.5 percent to 24.1
 percent.  In connection with the sale of Aerospace Electronics Systems for
 $1.67 billion in cash in the fourth quarter of 2000, the Corporation made a
 tax payment of $394 million in the first quarter of 2001, which is excluded
 from the Corporation's free cash flow calculation.
     The Corporation's backlog remained unchanged from the $56.4 billion
 reported at year-end 2000.  The Corporation recorded a total of approximately
 $5 billion in orders in the quarter including: the CVN 77 Aircraft Carrier
 systems integration, classified activities, F-22 program bridge funding for
 the first quarter of 2001, Aegis production, A-10 Precision Engagement weapon
 systems upgrade, National Airspace System Implementation Support Contract and
 3 new launch services orders.
 
     FIRST QUARTER DETAILED REVIEW
     Net sales for the first quarter of 2001 were $5.0 billion, compared with
 first quarter 2000 net sales of $5.6 billion.
     During the quarter, the Corporation recorded a nonrecurring and unusual
 charge related to impairment of its investment in Americom Asia-Pacific, which
 reduced net earnings by $65 million, or $0.15 per diluted share.  The
 satellite operated by Americom Asia-Pacific was placed in commercial operation
 late in the fourth quarter of 2000.  The Corporation reduced the carrying
 value of its investment as a result of overall market conditions manifested in
 the first quarter 2001.
     Net earnings for the first quarter of 2001 totaled $105 million, or $0.25
 per diluted share, as compared to net earnings of $54 million, or $0.14 per
 diluted share, in the comparable 2000 period.  Net earnings for the first
 quarter of 2001 included the after-tax impact of two nonrecurring and unusual
 items: a $72 million gain from the sale of surplus real estate and a $65
 million charge associated with the impairment of the Corporation's investment
 in Americom Asia-Pacific.
     The combination of these nonrecurring and unusual items increased first
 quarter 2001 diluted earnings per share by $0.02.  In the comparable 2000
 period, net earnings also included the after-tax impact of two nonrecurring
 and unusual items: a net gain of $10 million on the sale of surplus real
 estate and a $4 million charge associated with other portfolio shaping
 activities.  The combination of these nonrecurring and unusual items increased
 first quarter 2000 diluted earnings per share by $0.02.
 
     Segment Results:
 
     Systems Integration
     $Millions
 
                                                            1st Quarter
                                                         2001           2000
     Net sales                                         $1,880         $2,071
     EBIT                                                $173           $168
     Margin                                               9.2%           8.1%
 
     Systems Integration sales declined nine percent from the comparable 2000
 period.  However, excluding the sales attributable to the segment's Aerospace
 Electronic Systems and Controls Systems businesses, which were divested in
 2000, and the transfer of a contract, sales for the first quarter of 2001
 would have increased two percent from the year-ago period.  The increase is
 comprised of volume increases in the segment's Missiles & Air Defense product
 line and its Naval Electronics and Surveillance Systems product line over the
 comparable 2000 period.  These increases were partially offset by decreases in
 the segment's Systems Integration-Owego line of business, which includes
 electronic platform integration businesses.  Earnings before interest and
 taxes (EBIT) increased three percent in the first quarter of 2001 from the
 comparable 2000 period.  Adjusting for the EBIT attributable to the divested
 Aerospace Electronic Systems and Controls Systems businesses, EBIT for the
 first quarter of 2001 would have increased seven percent from the year-ago
 period.  The EBIT impact of the volume fluctuations mentioned previously
 accounted for the majority of the first quarter 2001 increase.
 
     Space Systems
     $Millions
                                                            1st Quarter
                                                         2001           2000
     Net sales                                         $1,371         $1,672
     EBIT as reported                                    $187            $85
     Nonrecurring and unusual items                     ($111)          ($17)
     Pro forma EBIT                                       $76            $68
     Pro forma margin                                     5.5%           4.1%
 
     Space Systems first quarter 2001 net sales declined 18 percent from the
 comparable 2000 period. The majority of this decrease is attributable to
 declines in volume in launch vehicle and commercial satellite activity from
 the comparable 2000 period. These declines more than offset increases in
 volume on ground systems and military and government satellite programs.  EBIT
 excluding nonrecurring and unusual items (pro forma EBIT) in the first quarter
 of 2001 increased 12 percent from the comparable 2000 period. This increase is
 primarily attributable to the combination of the absence in 2001 of
 unfavorable adjustments for market and pricing pressures related to the Atlas
 commercial launch vehicle program recorded during the first quarter of 2000
 and improved performance in 2001 on the Titan IV program. The EBIT impact of
 the volume increases on ground systems and military and government satellite
 programs discussed above were more than offset by the EBIT impact of volume
 declines on commercial space activities and an approximate $40 million loss
 provision recorded in the first quarter of 2001 on certain commercial
 satellite contracts related to schedule and technical issues.  In both 2001
 and 2000, the nonrecurring and unusual items were related to the sales of
 surplus real estate.
 
 
     Aeronautics
     $Millions
                                                            1st Quarter
                                                         2001           2000
     Net sales                                           $855         $1,036
     EBIT                                                 $79            $79
     Margin                                               9.2%           7.6%
 
     Aeronautics first quarter 2001 net sales declined 17 percent compared to
 the first quarter 2000 primarily due to fewer F-16 and C-130J aircraft
 deliveries.  This was partially offset by increased F-16 non-aircraft volume.
 EBIT for the first quarter of 2001 was consistent with the first quarter of
 2000, mainly as the result of continued favorable performance on combat
 aircraft programs.
 
     Technology Services
     $Millions
                                                            1st Quarter
                                                         2001           2000
     Net sales                                           $500           $464
     EBIT as reported                                     $34            $26
     Nonrecurring and unusual items                        $0             $6
     Pro forma EBIT                                       $34            $32
     Pro forma margin                                     6.8%           6.9%
 
     Net sales of the Technology Services segment increased by eight percent
 for the first quarter of 2001 over the comparable 2000 period.  This increase
 is mainly the result of increased volume on various federal technology
 services programs, primarily related to government information technology
 programs, and in the segment's aircraft maintenance and logistics line of
 business, primarily the Kelly Aviation Center contract.  These increases were
 partially offset by decreased volume on energy-related contracts due to lower
 operation and maintenance contract activity as well as the divestitures of
 Lockheed Martin Energy Technologies and Retech in January 2001.  Pro forma
 EBIT for the segment increased by six percent during the first quarter of 2001
 as compared to the respective 2000 period.  The change in EBIT was the result
 of previously mentioned volume fluctuations. In 2000, the nonrecurring and
 unusual item was related to portfolio shaping activity.
 
     Global Telecommunications
     $Millions
                                                            1st Quarter
                                                         2001           2000
     Net sales                                           $254           $173
     EBIT as reported                                   ($130)          ($33)
     Nonrecurring and unusual items                      $100             $0
     Pro forma EBIT                                      ($30)          ($33)
 
     Net sales of Global Telecommunications increased by 47 percent during the
 first quarter of 2001 over the comparable 2000 period.  This increase was
 primarily attributable to the inclusion of net sales from COMSAT Corporation
 in the segment's results beginning August 1, 2000, offset by the recognition
 of net sales on a Proton launch vehicle, which successfully launched the ACeS
 1 satellite in the first quarter of 2000.  Global Telecommunication's pro
 forma loss decreased 9 percent during the first quarter 2001 from the
 respective 2000 periods due to improvements in Global Telecommunications'
 Satellite Services line of business.  In 2001, the nonrecurring and unusual
 item was related to the previously mentioned charge for the impairment of the
 Corporation's investment in Americom Asia-Pacific.
 
     Corporate and Other
     $Millions
                                                             1st Quarter
                                                         2001           2000
     Net sales                                           $150           $146
     EBIT as reported                                     $29             $1
     Nonrecurring and unusual items                        $0             $1
     Pro forma EBIT                                       $29             $2
 
     Corporate and Other net sales for the first quarter 2001 increased by
 three percent from the comparable period in 2000.  This increase was mainly
 due to higher volume on state and municipal services programs.  Pro forma EBIT
 for the first quarter of 2001 increased by $27 million from the comparable
 2000 period.  This increase is primarily the result of increased interest
 income associated with the Corporation's higher cash balances in the first
 quarter of 2001 as compared to the first quarter of  2000.  In 2000, the
 nonrecurring and unusual item was related to the sale of surplus real estate.
 
     First Quarter 2001 Achievements
 
      *  Announced agreement to sell LMGT's Mobile Communications unit to
         Telenor of Norway
 
      *  Completed sale of Retech and Energy Technologies businesses to
         QuadraTech Group LLC
 
      *  Completed required milestones needed for award of F-22 production
         contract
 
      *  Completed flight testing of the X-35C JSF concept demonstrator
         aircraft
 
      *  Scored the seventh consecutive Patriot PAC-3 Missile intercept of a
         target missile
 
      *  Launched a Milstar II communications satellite aboard a Titan IVB
         rocket.
 
      *  Delivered six F-16s
 
      *  Won $313 million contract from Italy to support 34 leased F-16s over a
         10-year period.
 
      *  Booked three new launch contracts.
 
     Conference call:  Lockheed Martin will webcast the earnings conference
 call (listen-only mode) at 2 p.m. E.D.T. on April 24, 2001.  A live audio
 broadcast will be available on the Investor Relations page of the company's
 web site at http://www.lockheedmartin.com/investor or
 http://www.streetfusion.com.  An on-demand replay of the webcast will be
 available following the call and will continue for the following 90 days.
 
     SAFE HARBOR
     NOTE: Statements in this press release, including the statements relating
 to projected future financial performance, are considered forward-looking
 statements under the federal securities laws, including the Private Securities
 Litigation Reform Act of 1995.  Sometimes these statements will contain words
 such as "believes," "expects," "intends," "plans," "estimates," "outlook,"
 "forecast," and other similar words.  These statements are not guarantees of
 our future performance and are subject to risks, uncertainties and other
 important factors that could cause our actual performance or achievements to
 be materially different from those we may project.
     As for the forward-looking statements that relate to future financial
 results and other projections, actual results will be different due to the
 inherent nature of projections and may be better or worse than projected.
 Given these uncertainties, you should not rely on these forward-looking
 statements.  These forward-looking statements also represent our estimates and
 assumptions only as of the date that they were made.  We expressly disclaim a
 duty to provide updates to these forward-looking statements, and the estimates
 and assumptions associated with them, after the date of this press release to
 reflect events or circumstances or changes in expectations or the occurrence
 of anticipated events.
     In addition to the factors set forth in our 2000 Form 10-K and other
 filings with the Securities and Exchange Commission (http://www.sec.gov), the
 following factors could affect the forward-looking statements; the ability to
 achieve or quantify savings for our customers or ourselves through our global
 cost-cutting program and other financial management programs; the ability to
 obtain or the timing of obtaining future government awards; the availability
 of government funding and customer requirements; changes in government
 priorities due to program reviews or revisions to strategic objectives;
 difficulties in developing and producing operational advanced technology
 systems; the competitive environment; economic business and political
 conditions domestically and internationally; timing of awards and contracts;
 timing and customer acceptance of product delivery and launches; the outcome
 of contingencies, including completion of any acquisitions and divestitures,
 litigation and environmental remediation and program performance. These are
 only some of the numerous factors which may affect the forward-looking
 statements contained in this press release.
 
 
     LOCKHEED MARTIN CORPORATION
     Consolidated Results
     Preliminary and Unaudited
     (In millions, except for per share data and percentages)
 
                                           QUARTER ENDED MARCH 31,
                                           2001    2000  % Change
 
     Net Sales                            $5,010  $5,562   (10)%
 
     Earnings before Interest and Taxes     $372    $326    14 %
 
     Interest Expense                       $197    $227   (13)%
 
     Pre-tax Earnings                       $175     $99    77 %
 
     Income Taxes                            $70     $45    56 %
 
        Effective Tax Rate                   40%     45%   N/M
 
     Net Earnings                           $105     $54    94 %
 
     Basic Earnings Per Share              $0.25   $0.14    79 %
 
     Average Basic Shares Outstanding      423.3   387.1
 
     Diluted Earnings Per Share            $0.25   $0.14    79 %
 
     Average Diluted Shares Outstanding    427.8   387.5
 
 
     LOCKHEED MARTIN CORPORATION
     Segment Results Including Nonrecurring and Unusual Items
     Preliminary and Unaudited
     (In millions, except for percentages)
 
                                    QUARTER ENDED MARCH 31,
                                        2001    2000   %
                                                     Change
 
     Systems Integration (1 & 2)
     Net Sales                        $1,880  $2,071    (9)%
     Segment EBIT                       $173    $168     3 %
     Margins                            9.2%    8.1%
     Amortization of Goodwill and
      Contract Intangibles               $56     $68
     Depreciation and Amortization       $36     $52
 
     Space Systems (2)
     Net Sales                        $1,371  $1,672   (18)%
     Segment EBIT                       $187     $85   120 %
     Margins                           13.6%    5.1%
     Amortization of Goodwill and
      Contract Intangibles               $14     $14
     Depreciation and Amortization       $29     $33
 
     Aeronautics
     Net Sales                          $855  $1,036   (17)%
     Segment EBIT                        $79     $79    -- %
     Margins                            9.2%    7.6%
     Amortization of Goodwill and
      Contract Intangibles               $20     $20
     Depreciation and Amortization       $20     $21
 
     Technology Services (3)
     Net Sales                          $500    $464     8 %
     Segment EBIT                        $34     $26    31 %
     Margins                            6.8%    5.6%
     Amortization of Goodwill and
      Contract Intangibles                $4      $4
     Depreciation and Amortization        $3      $4
 
     Global Telecommunications (4)
     Net Sales                          $254    $173    47 %
     Segment EBIT                      ($130)   ($33)   N/M
     Margins                              N/M     N/M
     Amortization of Goodwill and
      Contract Intangibles               $18      $8
     Depreciation and Amortization       $19      $6
 
     Corporate and Other
     Net Sales                          $150    $146     3 %
     Segment EBIT                        $29      $1    N/M
     Margins                           19.3%    0.7%
     Amortization of Goodwill and
      Contract Intangibles               --       --
     Depreciation and Amortization        $8      $9
 
     (1)  2000 results include the operations of the Control Systems and
          Aerospace Electronic Systems businesses, which were divested
          in September and November of 2000, respectively.
 
     (2)  2000 results have been restated to reflect the transfer of the Space
          Applications Systems product line from the Systems Integration
          business area to the Space Systems business area in the second
          quarter of 2000.
 
     (3)  2000 results include the operations of the LM Energy Technologies and
          Retech businesses which were divested during January 2001.
 
     (4)  Global Telecommunications reflects the operations of Lockheed Martin
          Global Telecommunications (LMGT), which includes COMSAT and
          Integrated Business Solutions (IBS). Prior to the third quarter of
          2000, operations of both LMGT and IBS were included in the Corporate
          and Other business segment.
 
 
     LOCKHEED MARTIN CORPORATION
     Segment Results Excluding Nonrecurring and Unusual Items
     Preliminary and Unaudited
     (In millions, except for percentages)
 
                                    QUARTER ENDED MARCH 31,
                                        2001    2000   %
                                                     Change
 
     Systems Integration (1 & 2)
     Net Sales                        $1,880  $2,071    (9)%
     Segment EBIT                       $173    $168     3 %
     Margins                            9.2%    8.1%
     Amortization of Goodwill and
      Contract Intangibles               $56     $68
     Depreciation and Amortization       $36     $52
 
     Space Systems (2)
     Net Sales                        $1,371  $1,672   (18)%
     Segment EBIT                        $76     $68    12 %
     Margins                            5.5%    4.1%
     Amortization of Goodwill and
      Contract Intangibles               $14     $14
     Depreciation and Amortization       $29     $33
 
     Aeronautics
     Net Sales                          $855  $1,036   (17)%
     Segment EBIT                        $79     $79    -- %
     Margins                            9.2%    7.6%
     Amortization of Goodwill and
      Contract Intangibles               $20     $20
     Depreciation and Amortization       $20     $21
 
     Technology Services (3)
     Net Sales                          $500    $464     8 %
     Segment EBIT                        $34     $32     6 %
     Margins                            6.8%    6.9%
     Amortization of Goodwill and
      Contract Intangibles                $4      $4
     Depreciation and Amortization        $3      $4
 
     Global Telecommunications (4)
     Net Sales                          $254    $173    47 %
     Segment EBIT                       ($30)   ($33)   N/M
     Margins                              N/M     N/M
     Amortization of Goodwill and
      Contract Intangibles               $18      $8
     Depreciation and Amortization       $19      $6
 
     Corporate and Other
     Net Sales                          $150    $146     3 %
     Segment EBIT                        $29      $2    N/M
     Margins                           19.3%    1.4%
     Amortization of Goodwill and
      Contract Intangibles               --       --
     Depreciation and Amortization        $8      $9
 
     (1)  2000 results include the operations of the Control Systems and
          Aerospace Electronic Systems businesses, which were divested in
          September and November of 2000, respectively.
 
     (2)  2000 results have been restated to reflect the transfer of the Space
          Applications Systems product line from the Systems Integration
          business area to the Space Systems business area in the second
          quarter of 2000.
 
     (3)  2000 results include the operations of the LM Energy Technologies and
          Retech businesses which were divested during January 2001.
 
     (4)  Global Telecommunications reflects the operations of Lockheed Martin
          Global Telecommunications (LMGT), which includes COMSAT and
          Integrated Business Solutions (IBS). Prior to the third quarter of
          2000, operations of both LMGT and IBS were included in the Corporate
          and Other business segment.
 
 
     LOCKHEED MARTIN CORPORATION
     Reconciliation of Pro Forma Net Earnings (1)
     Preliminary and Unaudited
     (In millions, except for per share amounts and percentages)
 
                                                       QUARTER ENDED MARCH 31,
                                                       2001              2000
 
     Net Earnings - As Reported                        $105               $54
     After Tax Gain on Sales of Surplus
      Real Estate                                      ($72)             ($10)
     After Tax Loss on Americom Asia-
      Pacific Investment                                $65                --
     After Tax Loss on Divestitures and
      Other                                              --                $4
     Pro Forma Net Earnings                             $98               $48
 
     Pro Forma Effective Tax Rate                     39.7%             47.0%
 
     Diluted Earnings Per Share - As
      Reported                                        $0.25             $0.14
     After Tax Gain on Sales of Surplus
      Real Estate                                    ($0.17)           ($0.03)
     After Tax Loss on Americom Asia-
      Pacific Investment                              $0.15                --
     After Tax Loss on Divestitures and
      Other                                              --             $0.01
     Pro Forma Diluted Earnings Per Share             $0.23             $0.12
 
 
     (1)  Excludes nonrecurring and unusual items.
 
 
     LOCKHEED MARTIN CORPORATION
     Other Financial Information
     Preliminary and Unaudited
     (In millions, except for per share amounts and percentages)
 
                                                       QUARTER ENDED MARCH 31,
                                                       2001              2000
 
     Pro Forma EBIT                                    $361              $316
     Pro Forma EBIT to Sales Margin                    7.2%              5.7%
     Amortization of Goodwill and Contract
      Intangibles
       Resulting from Prior Acquisitions               $112              $114
     Depreciation and Amortization                     $115              $125
     Pro Forma EBITDA                                  $588              $555
 
 
                                                   MARCH 31,      DECEMBER 31,
                                                       2001              2000
     Total Backlog                                  $56,442           $56,424
       Systems Integration                          $17,027           $16,706
       Space Systems                                $14,887           $14,976
       Aeronautics                                  $17,484           $17,570
       Technology Services                           $4,405            $4,371
       Global Telecommunications                     $1,521            $1,625
       Corporate and Other                           $1,118            $1,176
 
     Total Debt                                      $9,930            $9,959
       Long-term (including current
        maturities)                                  $9,930            $9,947
       Short-term                                        --               $12
 
     Cash and Cash Equivalents                       $2,389            $1,505
 
     Stockholders' Equity                            $7,260            $7,160
 
     Total Debt-to-Capital                              58%               58%
 
     Total Debt-to-Capital (net of
      invested cash)                                    51%               54%
 
 
     LOCKHEED MARTIN CORPORATION
     Consolidated Condensed Balance Sheet
     Preliminary and Unaudited
     (In millions)
 
                                                   MARCH 31,      DECEMBER 31,
                                                       2001              2000
 
     Assets
 
     Cash and cash equivalents                       $2,389            $1,505
     Accounts Receivable                              3,934             4,195
     Inventories                                      3,571             3,825
     Other current assets                             1,629             1,734
 
        Total current assets                         11,523            11,259
 
     Property, plant and equipment                    3,334             3,446
     Goodwill and other intangible assets             9,829             9,943
     Other noncurrent assets                          5,824             5,701
 
        Total assets                                $30,510           $30,349
 
     Liabilities and Stockholders' Equity
 
     Short-term borrowings                              $--               $12
     Other accrued expenses                           9,330             9,281
     Current portion of long-term debt                  901               882
 
        Total current liabilities                    10,231            10,175
 
     Long-term debt                                   9,029             9,065
     Post-retirement and other noncurrent
      liabilities                                     3,990             3,949
     Stockholders' equity                             7,260             7,160
 
        Total liabilities and
         stockholders' equity                       $30,510           $30,349
 
 
     LOCKHEED MARTIN CORPORATION
     Consolidated Condensed Statement of Cash Flows
     Preliminary and Unaudited
     (In millions)
 
                                                       QUARTER ENDED MARCH 31,
                                                        2001             2000
 
     Operating Activities
     Net Earnings                                       $105              $54
     Adjustments to reconcile earnings to
      net cash
      provided by operating activities:
       Depreciation and amortization                     227              239
       Changes in operating assets and
        liabilities                                      717              189
 
        Net cash provided by operating
         activities                                    1,049              482
 
     Investing Activities
     Expenditures for property, plant &
      equipment                                          (72)             (84)
     Other                                               (59)             (30)
 
        Net cash used for investing
         activities                                     (131)            (114)
 
     Financing Activities
     Net decrease in short-term borrowings               (12)            (234)
     Net repayments of debt                              (17)             (13)
     Issuance of common stock                             43                1
     Common stock dividends                              (48)             (44)
 
        Net cash used for financing
         activities                                      (34)            (290)
 
 
     Net increase in cash and cash
      equivalents                                        884               78
     Cash and cash equivalents at
      beginning of period                              1,505              455
 
     Cash and cash equivalents at end of
      period                                          $2,389             $533
 
 
     LOCKHEED MARTIN CORPORATION
     Operating Data
 
                                                       QUARTER ENDED MARCH 31,
                                                       2001               2000
     Deliveries
     F-16                                                 6                 14
     C-130J                                               -                  3
 
     Launches
     Atlas                                                -                  2
     Proton                                               -                  1
     Athena                                               -                  -
     Titan IV                                             1                  -
 
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SOURCE Lockheed Martin Corporation
    BETHESDA, Md., April 24 /PRNewswire Interactive News Release/ -- Lockheed
 Martin Corporation (NYSE:   LMT) today reported first quarter 2001 net earnings
 per diluted share of $0.25, compared to first quarter 2000 net earnings per
 diluted share of $0.14.  Nonrecurring and unusual items increased first
 quarter 2001 results by $7 million, or $0.02 per diluted share, while such
 items contributed $6 million, or $0.02 per diluted share, to first quarter
 2000 results.  Excluding the aforementioned items, comparable first quarter
 earnings per diluted share would have been $0.23 for 2001 and $0.12 for 2000.
     The Corporation also reported it generated approximately $1.4 billion of
 free cash flow in the first quarter of 2001.  First quarter 2001 cash flow
 included a milestone payment related to an international F-16 program of more
 than $450 million after subcontractor payments and other disbursements.  The
 quarter also included pretax proceeds from the sale of surplus real estate of
 approximately $185 million.
     "These results indicate our continuing focus on strong performance for our
 customers and building value for our shareholders," said Chairman and Chief
 Executive Officer Vance Coffman.  "We are building on the solid performance we
 delivered in 2000.  This quarter we met or exceeded our financial expectations
 and are on track to achieve the goals we established for 2001.  We will
 continue to execute our stated management imperatives to achieve our vision to
 be the world's best advanced technology integrator, and in doing so, provide
 significant valuation potential for our shareholders."
     Net sales for the first quarter of 2001 were $5.0 billion, down ten
 percent when compared with first quarter 2000 sales of $5.6 billion.  Due to
 the 2001 schedule of space launches and aircraft deliveries as well as the
 continuation of historical sales trends in the Systems Integration and
 Technology Services business areas, sales and profit are expected to increase
 during the year.
     The Corporation estimates the 2001 distribution of sales to be between 20
 - 25 percent in the second quarter and between 55 - 60 percent in the second
 half of the year.  Sales for the year 2001 are anticipated to be between
 $24.6 - $24.8 billion.
     The Corporation reaffirmed its 2001 earnings per share outlook of a 25 -
 30 percent increase from the 2000 base of $1.07 per diluted share, excluding
 the effects of any nonrecurring and unusual items.  The earnings expectation
 assumes an estimated effective tax rate of 40 percent.  The Corporation
 estimates the quarterly distribution of diluted earnings per share for the
 remainder of 2001 to be approximately 15 - 25 percent for the second quarter,
 20 - 30 percent for the third quarter and 35 - 45 percent for the fourth
 quarter.
     The Corporation also reaffirmed its 2002 earnings per share outlook of a
 20 percent increase from the 2001 base.  This projection is based, among other
 factors, upon an estimated effective tax rate of 38 percent.
     During the first quarter, the Corporation announced that Telenor of Norway
 will acquire Lockheed Martin Global Telecommunications' Mobile Communications
 operations for $116.5 million in cash.  Also during the quarter, the
 Corporation increased its ownership in INTELSAT from 22.5 percent to 24.1
 percent.  In connection with the sale of Aerospace Electronics Systems for
 $1.67 billion in cash in the fourth quarter of 2000, the Corporation made a
 tax payment of $394 million in the first quarter of 2001, which is excluded
 from the Corporation's free cash flow calculation.
     The Corporation's backlog remained unchanged from the $56.4 billion
 reported at year-end 2000.  The Corporation recorded a total of approximately
 $5 billion in orders in the quarter including: the CVN 77 Aircraft Carrier
 systems integration, classified activities, F-22 program bridge funding for
 the first quarter of 2001, Aegis production, A-10 Precision Engagement weapon
 systems upgrade, National Airspace System Implementation Support Contract and
 3 new launch services orders.
 
     FIRST QUARTER DETAILED REVIEW
     Net sales for the first quarter of 2001 were $5.0 billion, compared with
 first quarter 2000 net sales of $5.6 billion.
     During the quarter, the Corporation recorded a nonrecurring and unusual
 charge related to impairment of its investment in Americom Asia-Pacific, which
 reduced net earnings by $65 million, or $0.15 per diluted share.  The
 satellite operated by Americom Asia-Pacific was placed in commercial operation
 late in the fourth quarter of 2000.  The Corporation reduced the carrying
 value of its investment as a result of overall market conditions manifested in
 the first quarter 2001.
     Net earnings for the first quarter of 2001 totaled $105 million, or $0.25
 per diluted share, as compared to net earnings of $54 million, or $0.14 per
 diluted share, in the comparable 2000 period.  Net earnings for the first
 quarter of 2001 included the after-tax impact of two nonrecurring and unusual
 items: a $72 million gain from the sale of surplus real estate and a $65
 million charge associated with the impairment of the Corporation's investment
 in Americom Asia-Pacific.
     The combination of these nonrecurring and unusual items increased first
 quarter 2001 diluted earnings per share by $0.02.  In the comparable 2000
 period, net earnings also included the after-tax impact of two nonrecurring
 and unusual items: a net gain of $10 million on the sale of surplus real
 estate and a $4 million charge associated with other portfolio shaping
 activities.  The combination of these nonrecurring and unusual items increased
 first quarter 2000 diluted earnings per share by $0.02.
 
     Segment Results:
 
     Systems Integration
     $Millions
 
                                                            1st Quarter
                                                         2001           2000
     Net sales                                         $1,880         $2,071
     EBIT                                                $173           $168
     Margin                                               9.2%           8.1%
 
     Systems Integration sales declined nine percent from the comparable 2000
 period.  However, excluding the sales attributable to the segment's Aerospace
 Electronic Systems and Controls Systems businesses, which were divested in
 2000, and the transfer of a contract, sales for the first quarter of 2001
 would have increased two percent from the year-ago period.  The increase is
 comprised of volume increases in the segment's Missiles & Air Defense product
 line and its Naval Electronics and Surveillance Systems product line over the
 comparable 2000 period.  These increases were partially offset by decreases in
 the segment's Systems Integration-Owego line of business, which includes
 electronic platform integration businesses.  Earnings before interest and
 taxes (EBIT) increased three percent in the first quarter of 2001 from the
 comparable 2000 period.  Adjusting for the EBIT attributable to the divested
 Aerospace Electronic Systems and Controls Systems businesses, EBIT for the
 first quarter of 2001 would have increased seven percent from the year-ago
 period.  The EBIT impact of the volume fluctuations mentioned previously
 accounted for the majority of the first quarter 2001 increase.
 
     Space Systems
     $Millions
                                                            1st Quarter
                                                         2001           2000
     Net sales                                         $1,371         $1,672
     EBIT as reported                                    $187            $85
     Nonrecurring and unusual items                     ($111)          ($17)
     Pro forma EBIT                                       $76            $68
     Pro forma margin                                     5.5%           4.1%
 
     Space Systems first quarter 2001 net sales declined 18 percent from the
 comparable 2000 period. The majority of this decrease is attributable to
 declines in volume in launch vehicle and commercial satellite activity from
 the comparable 2000 period. These declines more than offset increases in
 volume on ground systems and military and government satellite programs.  EBIT
 excluding nonrecurring and unusual items (pro forma EBIT) in the first quarter
 of 2001 increased 12 percent from the comparable 2000 period. This increase is
 primarily attributable to the combination of the absence in 2001 of
 unfavorable adjustments for market and pricing pressures related to the Atlas
 commercial launch vehicle program recorded during the first quarter of 2000
 and improved performance in 2001 on the Titan IV program. The EBIT impact of
 the volume increases on ground systems and military and government satellite
 programs discussed above were more than offset by the EBIT impact of volume
 declines on commercial space activities and an approximate $40 million loss
 provision recorded in the first quarter of 2001 on certain commercial
 satellite contracts related to schedule and technical issues.  In both 2001
 and 2000, the nonrecurring and unusual items were related to the sales of
 surplus real estate.
 
 
     Aeronautics
     $Millions
                                                            1st Quarter
                                                         2001           2000
     Net sales                                           $855         $1,036
     EBIT                                                 $79            $79
     Margin                                               9.2%           7.6%
 
     Aeronautics first quarter 2001 net sales declined 17 percent compared to
 the first quarter 2000 primarily due to fewer F-16 and C-130J aircraft
 deliveries.  This was partially offset by increased F-16 non-aircraft volume.
 EBIT for the first quarter of 2001 was consistent with the first quarter of
 2000, mainly as the result of continued favorable performance on combat
 aircraft programs.
 
     Technology Services
     $Millions
                                                            1st Quarter
                                                         2001           2000
     Net sales                                           $500           $464
     EBIT as reported                                     $34            $26
     Nonrecurring and unusual items                        $0             $6
     Pro forma EBIT                                       $34            $32
     Pro forma margin                                     6.8%           6.9%
 
     Net sales of the Technology Services segment increased by eight percent
 for the first quarter of 2001 over the comparable 2000 period.  This increase
 is mainly the result of increased volume on various federal technology
 services programs, primarily related to government information technology
 programs, and in the segment's aircraft maintenance and logistics line of
 business, primarily the Kelly Aviation Center contract.  These increases were
 partially offset by decreased volume on energy-related contracts due to lower
 operation and maintenance contract activity as well as the divestitures of
 Lockheed Martin Energy Technologies and Retech in January 2001.  Pro forma
 EBIT for the segment increased by six percent during the first quarter of 2001
 as compared to the respective 2000 period.  The change in EBIT was the result
 of previously mentioned volume fluctuations. In 2000, the nonrecurring and
 unusual item was related to portfolio shaping activity.
 
     Global Telecommunications
     $Millions
                                                            1st Quarter
                                                         2001           2000
     Net sales                                           $254           $173
     EBIT as reported                                   ($130)          ($33)
     Nonrecurring and unusual items                      $100             $0
     Pro forma EBIT                                      ($30)          ($33)
 
     Net sales of Global Telecommunications increased by 47 percent during the
 first quarter of 2001 over the comparable 2000 period.  This increase was
 primarily attributable to the inclusion of net sales from COMSAT Corporation
 in the segment's results beginning August 1, 2000, offset by the recognition
 of net sales on a Proton launch vehicle, which successfully launched the ACeS
 1 satellite in the first quarter of 2000.  Global Telecommunication's pro
 forma loss decreased 9 percent during the first quarter 2001 from the
 respective 2000 periods due to improvements in Global Telecommunications'
 Satellite Services line of business.  In 2001, the nonrecurring and unusual
 item was related to the previously mentioned charge for the impairment of the
 Corporation's investment in Americom Asia-Pacific.
 
     Corporate and Other
     $Millions
                                                             1st Quarter
                                                         2001           2000
     Net sales                                           $150           $146
     EBIT as reported                                     $29             $1
     Nonrecurring and unusual items                        $0             $1
     Pro forma EBIT                                       $29             $2
 
     Corporate and Other net sales for the first quarter 2001 increased by
 three percent from the comparable period in 2000.  This increase was mainly
 due to higher volume on state and municipal services programs.  Pro forma EBIT
 for the first quarter of 2001 increased by $27 million from the comparable
 2000 period.  This increase is primarily the result of increased interest
 income associated with the Corporation's higher cash balances in the first
 quarter of 2001 as compared to the first quarter of  2000.  In 2000, the
 nonrecurring and unusual item was related to the sale of surplus real estate.
 
     First Quarter 2001 Achievements
 
      *  Announced agreement to sell LMGT's Mobile Communications unit to
         Telenor of Norway
 
      *  Completed sale of Retech and Energy Technologies businesses to
         QuadraTech Group LLC
 
      *  Completed required milestones needed for award of F-22 production
         contract
 
      *  Completed flight testing of the X-35C JSF concept demonstrator
         aircraft
 
      *  Scored the seventh consecutive Patriot PAC-3 Missile intercept of a
         target missile
 
      *  Launched a Milstar II communications satellite aboard a Titan IVB
         rocket.
 
      *  Delivered six F-16s
 
      *  Won $313 million contract from Italy to support 34 leased F-16s over a
         10-year period.
 
      *  Booked three new launch contracts.
 
     Conference call:  Lockheed Martin will webcast the earnings conference
 call (listen-only mode) at 2 p.m. E.D.T. on April 24, 2001.  A live audio
 broadcast will be available on the Investor Relations page of the company's
 web site at http://www.lockheedmartin.com/investor or
 http://www.streetfusion.com.  An on-demand replay of the webcast will be
 available following the call and will continue for the following 90 days.
 
     SAFE HARBOR
     NOTE: Statements in this press release, including the statements relating
 to projected future financial performance, are considered forward-looking
 statements under the federal securities laws, including the Private Securities
 Litigation Reform Act of 1995.  Sometimes these statements will contain words
 such as "believes," "expects," "intends," "plans," "estimates," "outlook,"
 "forecast," and other similar words.  These statements are not guarantees of
 our future performance and are subject to risks, uncertainties and other
 important factors that could cause our actual performance or achievements to
 be materially different from those we may project.
     As for the forward-looking statements that relate to future financial
 results and other projections, actual results will be different due to the
 inherent nature of projections and may be better or worse than projected.
 Given these uncertainties, you should not rely on these forward-looking
 statements.  These forward-looking statements also represent our estimates and
 assumptions only as of the date that they were made.  We expressly disclaim a
 duty to provide updates to these forward-looking statements, and the estimates
 and assumptions associated with them, after the date of this press release to
 reflect events or circumstances or changes in expectations or the occurrence
 of anticipated events.
     In addition to the factors set forth in our 2000 Form 10-K and other
 filings with the Securities and Exchange Commission (http://www.sec.gov), the
 following factors could affect the forward-looking statements; the ability to
 achieve or quantify savings for our customers or ourselves through our global
 cost-cutting program and other financial management programs; the ability to
 obtain or the timing of obtaining future government awards; the availability
 of government funding and customer requirements; changes in government
 priorities due to program reviews or revisions to strategic objectives;
 difficulties in developing and producing operational advanced technology
 systems; the competitive environment; economic business and political
 conditions domestically and internationally; timing of awards and contracts;
 timing and customer acceptance of product delivery and launches; the outcome
 of contingencies, including completion of any acquisitions and divestitures,
 litigation and environmental remediation and program performance. These are
 only some of the numerous factors which may affect the forward-looking
 statements contained in this press release.
 
 
     LOCKHEED MARTIN CORPORATION
     Consolidated Results
     Preliminary and Unaudited
     (In millions, except for per share data and percentages)
 
                                           QUARTER ENDED MARCH 31,
                                           2001    2000  % Change
 
     Net Sales                            $5,010  $5,562   (10)%
 
     Earnings before Interest and Taxes     $372    $326    14 %
 
     Interest Expense                       $197    $227   (13)%
 
     Pre-tax Earnings                       $175     $99    77 %
 
     Income Taxes                            $70     $45    56 %
 
        Effective Tax Rate                   40%     45%   N/M
 
     Net Earnings                           $105     $54    94 %
 
     Basic Earnings Per Share              $0.25   $0.14    79 %
 
     Average Basic Shares Outstanding      423.3   387.1
 
     Diluted Earnings Per Share            $0.25   $0.14    79 %
 
     Average Diluted Shares Outstanding    427.8   387.5
 
 
     LOCKHEED MARTIN CORPORATION
     Segment Results Including Nonrecurring and Unusual Items
     Preliminary and Unaudited
     (In millions, except for percentages)
 
                                    QUARTER ENDED MARCH 31,
                                        2001    2000   %
                                                     Change
 
     Systems Integration (1 & 2)
     Net Sales                        $1,880  $2,071    (9)%
     Segment EBIT                       $173    $168     3 %
     Margins                            9.2%    8.1%
     Amortization of Goodwill and
      Contract Intangibles               $56     $68
     Depreciation and Amortization       $36     $52
 
     Space Systems (2)
     Net Sales                        $1,371  $1,672   (18)%
     Segment EBIT                       $187     $85   120 %
     Margins                           13.6%    5.1%
     Amortization of Goodwill and
      Contract Intangibles               $14     $14
     Depreciation and Amortization       $29     $33
 
     Aeronautics
     Net Sales                          $855  $1,036   (17)%
     Segment EBIT                        $79     $79    -- %
     Margins                            9.2%    7.6%
     Amortization of Goodwill and
      Contract Intangibles               $20     $20
     Depreciation and Amortization       $20     $21
 
     Technology Services (3)
     Net Sales                          $500    $464     8 %
     Segment EBIT                        $34     $26    31 %
     Margins                            6.8%    5.6%
     Amortization of Goodwill and
      Contract Intangibles                $4      $4
     Depreciation and Amortization        $3      $4
 
     Global Telecommunications (4)
     Net Sales                          $254    $173    47 %
     Segment EBIT                      ($130)   ($33)   N/M
     Margins                              N/M     N/M
     Amortization of Goodwill and
      Contract Intangibles               $18      $8
     Depreciation and Amortization       $19      $6
 
     Corporate and Other
     Net Sales                          $150    $146     3 %
     Segment EBIT                        $29      $1    N/M
     Margins                           19.3%    0.7%
     Amortization of Goodwill and
      Contract Intangibles               --       --
     Depreciation and Amortization        $8      $9
 
     (1)  2000 results include the operations of the Control Systems and
          Aerospace Electronic Systems businesses, which were divested
          in September and November of 2000, respectively.
 
     (2)  2000 results have been restated to reflect the transfer of the Space
          Applications Systems product line from the Systems Integration
          business area to the Space Systems business area in the second
          quarter of 2000.
 
     (3)  2000 results include the operations of the LM Energy Technologies and
          Retech businesses which were divested during January 2001.
 
     (4)  Global Telecommunications reflects the operations of Lockheed Martin
          Global Telecommunications (LMGT), which includes COMSAT and
          Integrated Business Solutions (IBS). Prior to the third quarter of
          2000, operations of both LMGT and IBS were included in the Corporate
          and Other business segment.
 
 
     LOCKHEED MARTIN CORPORATION
     Segment Results Excluding Nonrecurring and Unusual Items
     Preliminary and Unaudited
     (In millions, except for percentages)
 
                                    QUARTER ENDED MARCH 31,
                                        2001    2000   %
                                                     Change
 
     Systems Integration (1 & 2)
     Net Sales                        $1,880  $2,071    (9)%
     Segment EBIT                       $173    $168     3 %
     Margins                            9.2%    8.1%
     Amortization of Goodwill and
      Contract Intangibles               $56     $68
     Depreciation and Amortization       $36     $52
 
     Space Systems (2)
     Net Sales                        $1,371  $1,672   (18)%
     Segment EBIT                        $76     $68    12 %
     Margins                            5.5%    4.1%
     Amortization of Goodwill and
      Contract Intangibles               $14     $14
     Depreciation and Amortization       $29     $33
 
     Aeronautics
     Net Sales                          $855  $1,036   (17)%
     Segment EBIT                        $79     $79    -- %
     Margins                            9.2%    7.6%
     Amortization of Goodwill and
      Contract Intangibles               $20     $20
     Depreciation and Amortization       $20     $21
 
     Technology Services (3)
     Net Sales                          $500    $464     8 %
     Segment EBIT                        $34     $32     6 %
     Margins                            6.8%    6.9%
     Amortization of Goodwill and
      Contract Intangibles                $4      $4
     Depreciation and Amortization        $3      $4
 
     Global Telecommunications (4)
     Net Sales                          $254    $173    47 %
     Segment EBIT                       ($30)   ($33)   N/M
     Margins                              N/M     N/M
     Amortization of Goodwill and
      Contract Intangibles               $18      $8
     Depreciation and Amortization       $19      $6
 
     Corporate and Other
     Net Sales                          $150    $146     3 %
     Segment EBIT                        $29      $2    N/M
     Margins                           19.3%    1.4%
     Amortization of Goodwill and
      Contract Intangibles               --       --
     Depreciation and Amortization        $8      $9
 
     (1)  2000 results include the operations of the Control Systems and
          Aerospace Electronic Systems businesses, which were divested in
          September and November of 2000, respectively.
 
     (2)  2000 results have been restated to reflect the transfer of the Space
          Applications Systems product line from the Systems Integration
          business area to the Space Systems business area in the second
          quarter of 2000.
 
     (3)  2000 results include the operations of the LM Energy Technologies and
          Retech businesses which were divested during January 2001.
 
     (4)  Global Telecommunications reflects the operations of Lockheed Martin
          Global Telecommunications (LMGT), which includes COMSAT and
          Integrated Business Solutions (IBS). Prior to the third quarter of
          2000, operations of both LMGT and IBS were included in the Corporate
          and Other business segment.
 
 
     LOCKHEED MARTIN CORPORATION
     Reconciliation of Pro Forma Net Earnings (1)
     Preliminary and Unaudited
     (In millions, except for per share amounts and percentages)
 
                                                       QUARTER ENDED MARCH 31,
                                                       2001              2000
 
     Net Earnings - As Reported                        $105               $54
     After Tax Gain on Sales of Surplus
      Real Estate                                      ($72)             ($10)
     After Tax Loss on Americom Asia-
      Pacific Investment                                $65                --
     After Tax Loss on Divestitures and
      Other                                              --                $4
     Pro Forma Net Earnings                             $98               $48
 
     Pro Forma Effective Tax Rate                     39.7%             47.0%
 
     Diluted Earnings Per Share - As
      Reported                                        $0.25             $0.14
     After Tax Gain on Sales of Surplus
      Real Estate                                    ($0.17)           ($0.03)
     After Tax Loss on Americom Asia-
      Pacific Investment                              $0.15                --
     After Tax Loss on Divestitures and
      Other                                              --             $0.01
     Pro Forma Diluted Earnings Per Share             $0.23             $0.12
 
 
     (1)  Excludes nonrecurring and unusual items.
 
 
     LOCKHEED MARTIN CORPORATION
     Other Financial Information
     Preliminary and Unaudited
     (In millions, except for per share amounts and percentages)
 
                                                       QUARTER ENDED MARCH 31,
                                                       2001              2000
 
     Pro Forma EBIT                                    $361              $316
     Pro Forma EBIT to Sales Margin                    7.2%              5.7%
     Amortization of Goodwill and Contract
      Intangibles
       Resulting from Prior Acquisitions               $112              $114
     Depreciation and Amortization                     $115              $125
     Pro Forma EBITDA                                  $588              $555
 
 
                                                   MARCH 31,      DECEMBER 31,
                                                       2001              2000
     Total Backlog                                  $56,442           $56,424
       Systems Integration                          $17,027           $16,706
       Space Systems                                $14,887           $14,976
       Aeronautics                                  $17,484           $17,570
       Technology Services                           $4,405            $4,371
       Global Telecommunications                     $1,521            $1,625
       Corporate and Other                           $1,118            $1,176
 
     Total Debt                                      $9,930            $9,959
       Long-term (including current
        maturities)                                  $9,930            $9,947
       Short-term                                        --               $12
 
     Cash and Cash Equivalents                       $2,389            $1,505
 
     Stockholders' Equity                            $7,260            $7,160
 
     Total Debt-to-Capital                              58%               58%
 
     Total Debt-to-Capital (net of
      invested cash)                                    51%               54%
 
 
     LOCKHEED MARTIN CORPORATION
     Consolidated Condensed Balance Sheet
     Preliminary and Unaudited
     (In millions)
 
                                                   MARCH 31,      DECEMBER 31,
                                                       2001              2000
 
     Assets
 
     Cash and cash equivalents                       $2,389            $1,505
     Accounts Receivable                              3,934             4,195
     Inventories                                      3,571             3,825
     Other current assets                             1,629             1,734
 
        Total current assets                         11,523            11,259
 
     Property, plant and equipment                    3,334             3,446
     Goodwill and other intangible assets             9,829             9,943
     Other noncurrent assets                          5,824             5,701
 
        Total assets                                $30,510           $30,349
 
     Liabilities and Stockholders' Equity
 
     Short-term borrowings                              $--               $12
     Other accrued expenses                           9,330             9,281
     Current portion of long-term debt                  901               882
 
        Total current liabilities                    10,231            10,175
 
     Long-term debt                                   9,029             9,065
     Post-retirement and other noncurrent
      liabilities                                     3,990             3,949
     Stockholders' equity                             7,260             7,160
 
        Total liabilities and
         stockholders' equity                       $30,510           $30,349
 
 
     LOCKHEED MARTIN CORPORATION
     Consolidated Condensed Statement of Cash Flows
     Preliminary and Unaudited
     (In millions)
 
                                                       QUARTER ENDED MARCH 31,
                                                        2001             2000
 
     Operating Activities
     Net Earnings                                       $105              $54
     Adjustments to reconcile earnings to
      net cash
      provided by operating activities:
       Depreciation and amortization                     227              239
       Changes in operating assets and
        liabilities                                      717              189
 
        Net cash provided by operating
         activities                                    1,049              482
 
     Investing Activities
     Expenditures for property, plant &
      equipment                                          (72)             (84)
     Other                                               (59)             (30)
 
        Net cash used for investing
         activities                                     (131)            (114)
 
     Financing Activities
     Net decrease in short-term borrowings               (12)            (234)
     Net repayments of debt                              (17)             (13)
     Issuance of common stock                             43                1
     Common stock dividends                              (48)             (44)
 
        Net cash used for financing
         activities                                      (34)            (290)
 
 
     Net increase in cash and cash
      equivalents                                        884               78
     Cash and cash equivalents at
      beginning of period                              1,505              455
 
     Cash and cash equivalents at end of
      period                                          $2,389             $533
 
 
     LOCKHEED MARTIN CORPORATION
     Operating Data
 
                                                       QUARTER ENDED MARCH 31,
                                                       2001               2000
     Deliveries
     F-16                                                 6                 14
     C-130J                                               -                  3
 
     Launches
     Atlas                                                -                  2
     Proton                                               -                  1
     Athena                                               -                  -
     Titan IV                                             1                  -
 
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 SOURCE  Lockheed Martin Corporation

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