Memorandum

DATE: December 15, 2011
TO: All Lockheed Martin Employees
FROM: Bob Stevens, Chairman and Chief Executive Officer
            Chris Kubasik, President and Chief Operating Officer

SUBJECT: Thanks for a great year, enjoy the holidays


As 2011 comes to a close and we prepare to welcome in 2012, we pause today to say thanks for all you did this year for our customers.  In the face of a tough economy, growing pressure on limited resources, and increasing uncertainty about the future, you delivered solid performance across the corporation.  At the same time, you focused on continuously improving all aspects of our business.  As a result, we’ve cut overhead costs, streamlined processes and operations, and found innovative ways to adapt to evolving demands – all to provide more affordable solutions to our government customers.  The business is stronger as a result, and we’re positioned for the challenges ahead.

We see your rock-solid performance every day, so it was no surprise to us that in June, Aviation Week and Space Technology Magazine named Lockheed Martin the industry’s Top Performing Company for an unprecedented fourth consecutive year.  In the words of the editors, as far as program performance and cost are concerned, “Lockheed Martin is the one to beat.’’  We could not agree more.  Aviation Week’s recognition clearly reflects your readiness to take on difficult challenges successfully, providing benefits to our customers and shareholders alike.

In addition to performing with excellence and delivering on our commitments to customers, you also took time this year to make our communities better places to work and live.  For an amazing seventh consecutive year, you logged more than 1 million volunteer hours, mentoring in schools, sending care packages to troops deployed far from home, helping colleagues affected by natural disasters, walking for heart health…and so many more.  That’s testimony to your character and spirit of citizenship, and we are grateful for your contributions.

Next year, our customers will face even greater challenges.  The U.S. budget will remain under pressure, which will result in fewer opportunities to compete for new business in our core aerospace and defense markets.  Consequently, we expect sales to be relatively flat.  But we like our portfolio, which we believe is the broadest and best in the industry.  We’ll continue to focus on international growth and adjacent markets that align with our core competencies.  We’ll continue to find innovative and affordable solutions to our customers’ most difficult challenges.  We’ll continue to always be professional and respectful in all our relationships.  And most of all, we’ll continue to count on you to always do what’s right, respect others, and perform with excellence.

That’s who we are.  That’s what we do.  We believe that there is nothing that can’t be done, and nothing that we can’t do when we all focus our attention and professionalism on the missions of our customers.  That applies to every program we deliver, every mission we support, and every customer we make commitments to.  Because we never forget who we’re working for.

Lockheed Martin is a great company because of you and those who were here before you.  We do important work.  We make a real difference in the lives of millions of people around the globe.  Thank you for who you are, what you do, and how you do it.  We’re proud of you.

Thanks again for a great 2011.  A new year is just around the corner, and it will mark an important milestone in our Corporation's history.  Our primary predecessor companies – the Lockheed brothers' Alco Hydro Airplane Company and the Glenn L. Martin Company – were both incorporated in 1912, planting the seeds for the powerhouse of innovation we have become.  We will reflect on that 100-year legacy and all who have contributed to it throughout year, and we will extend that legacy, continuing to explore the horizons of technology in service to our customers and the global security mission.

First, though, it will soon be time to celebrate the holidays.  We hope you will enjoy time with family and friends.  We wish you and yours a safe and merry holiday season.