Lockheed Martin Corporation (LMT) yesterday completed the acquisition of Gyrocam Systems LLC, which develops and supplies primarily to the U.S. military – gyrostabilized optical surveillance systems and sustainment field services.
Historically, Lockheed Martin has grown through both organic means and acquisitions. Through the Gyrocam acquisition, the company increased its exposure into the state-of-the-art surveillance systems business.
The company is focused on improving the performance of its Electronic Systems segment, where it witnessed 1% lower sales year over year, primarily due to lower air defense programs sales. However, the marginal fall is misleading since much of the damage was offset by higher simulation and training activities, besides radar programs and surface naval warfare activities. The onus for higher simulation and training sales came from the January 2009 acquisition of Universal Systems & Technology, Inc.
Lockheed Martin Corporation is the largest defense contractor in the world. The company’s customer base includes the U.S. Government, foreign governments and other commercial buyers. We maintain our market Neutral recommendation on the shares.
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