LM Announces New Mission Systems & Sensors Business

• Up To 1,200 U.S. Job Reductions Planned To Improve Efficiency, Competitiveness

(Bethesda, MD., January 6, 2010) -- Lockheed Martin Corporation [NYSE: LMT] today announced the name and top level organizational structure for its new Mission Systems & Sensors business, one of three primary operating companies within the Electronic Systems Business Area.

Abbreviated as "MS2", Mission Systems & Sensors represents the realignment of two prior standalone businesses in Electronic Systems, the former Maritime Systems & Sensors and Systems Integration - Owego.

While the new MS2 still retains a unique breadth and depth of support for maritime forces, with the integration of the former Systems Integration - Owego, it now has a significantly expanded portfolio of capabilities in products, processors, and integration expertise.

As announced in mid-November, the two businesses officially combined on January 1. As a result of the anticipated synergies and efficiencies the combination will bring, the company expects to eliminate approximately 1,200 U.S. positions from the MS2 business. Affected employees will be notified by early April.

"The new MS2 reflects our goal to drive performance excellence with a keen focus on affordability in everything we do," said Orlando P. Carvalho, president of MS2. "We recognize the challenges our customers face and are making every effort to improve efficiencies that enable unparalleled service at the right price."

The following represents the top level structure of the new MS2, along with the executive leaders. MS2 will establish five lines of business as follows:

-- Ship & Aviation Systems: Led by Daniel Schultz, this new business will include much of the former Integrated Defense Technologies line of business, the former Systems Integration - Owego and elements of the former Tactical Systems line of business. It also will include Lockheed Martin UK - Integrated Systems.
-- Undersea Systems: Led by Denise Saiki, will expand to include the Command and Control and Communications & Networking Systems elements of the former Tactical Systems business.
-- New Ventures: Led by Jeff Napoliello, will be expanded to include medical; cargo security; chemical, biological, radiological, nuclear and explosives sensor systems; optical communications, and fuel cells from the former Integrated Defense Technologies line of business, as well as renewable energy efforts underway across both the former Systems Integration-Owego and MS2 businesses including solar, wave and ocean thermal initiatives.
-- Surface Sea-based Missile Defense Systems: Led by Jeff Bantle, will continue to focus on current and future surface combatants including Aegis-equipped destroyers. As before, it will include Lockheed Martin Canada.
-- Radar Systems: Led by Carl Bannar, remains focused on radar systems and surface electronic warfare. It will continue to include Lockheed Martin Australia.

"This new structure, under these leaders, will position our business for growth while demonstrating our enhanced value proposition for our customers," said Carvalho.

In addition to the new MS2 organization design announced today, the ground vehicles line of business from the former Systems Integration - Owego, which includes the Joint Light Tactical Vehicle program, has been realigned to Lockheed Martin Missiles and Fire Control. Aligning the JLTV effort with resident expertise and experience in ground vehicles associated with Army and Marine Corps missile launcher programs, and high volume manufacturing, will only strengthen Lockheed Martin's JLTV solution.

Source : Lockheed Martin Corporation (NYSE: LMT)