Lockheed Martin International Launch Press Conference

Remarks by CEO and President
Marillyn A. Hewson and

Executive Vice President –
Lockheed Martin International
Patrick M. Dewar

Royal Air Force Club,
London, United Kingdom

July 1, 2013

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MARILLYN HEWSON:

Well, good afternoon. And thank you for joining us this afternoon for a very exciting announcement. You know, Lockheed Martin has long been a global business. In fact, we do business in over 70 countries, and we have more than 1,000 in-country partnerships with suppliers, with businesses, and with leading universities.

And we know that serving international governments is about partnerships. So that’s why I’m really excited to be here today, because we recognize that it takes a keen understanding of our customers’ goals, their challenges, and their vision for how they protect and serve their citizens. And gaining that understanding takes listening, communicating, and more importantly, building relationships.

So we’re at our best internationally when we’re helping governments to protect their citizens and to provide essential services. And we’re also at our best when we’re helping them to cultivate technical expertise, economic development for their countries, and job growth.

So that’s why I’m excited today to tell you that we are launching a new organization that will accelerate our international partnerships and provide new opportunities for our global customers, for our suppliers, and for our employees around the world.

We’re pleased to announce the formation of Lockheed Martin International. It’s a new organization that will consolidate our global activities into a unified team. We will bring additional resources, and we will bring strong leadership focus from across the entire Lockheed Martin enterprise.

This new Lockheed Martin operating model will offer our customers significant benefits. Lockheed Martin International will provide enterprise-wide offerings that draw from the full breadth and depth of our diverse portfolios, and it will provide proven technologies and services to our customers.

You know, we find that our international customers value knowing that the capabilities and technologies that they’re acquiring are proven, are state-of-the-art, and are affordable. So with Lockheed Martin International, we’re going to be able to do an even better job of integrating our products, our services, and our expertise from across the entire corporation and deliver unique solutions to our customers.

In addition, Lockheed Martin International will unify and sharpen our focus on in-country partnerships with governments, businesses, as well as with leading universities. And as we partner, we’re going to be able to partner on security and services, on economic development, on technology development, and on job growth.

Lockheed Martin International is a key component of our growth strategy at Lockheed Martin. We are making great progress toward our goal of growing our international sales from 17 percent of our total revenue to 20 percent over the next few years. In fact, today we’re at about $8 billion in sales to international customers, and we plan to grow that over the next few years.

We’ve also seen a number of international new business wins just this year, so we’re seeing great progress toward this goal. In fact, we’ve seen the renewal of our air traffic control work that we do here in the UK, fighter pilot training systems in Saudi Arabia and JASSM missiles for Finland. We recently added an additional 18 F-16 fighters for Iraq and an ocean thermal energy plant in China.

SIM Industries, which is our commercial aircraft simulator business in the Netherlands, is also thriving, and we will dedicate the F-35 final assembly and checkout facility in Italy later this month. We dedicated a new office in Saudi Arabia in January, and our offices in Australia, Canada, and the UK are continuing to grow.

So we are focusing our resources. We’re focusing talent. We’re focusing our leadership to accelerate our growth and position Lockheed Martin and our customers for long-term success. Our international customers are a top priority for me and for my leadership team. That’s why this year, I’ve already visited several customers around the world in Saudi Arabia, in Israel, the UAE, and Italy. I’ve also had the opportunity to have many discussions with international customers that have visited the U.S. in recent months. And in the next few months, I will be meeting with customers in Italy, Singapore, Denmark, the UAE, and I’ll be back here in the UK for the Royal International Air Tattoo later in the month, and meeting with customers there.

So I’m making face-to-face visits, spending time, listening and communicating. Building and strengthening relationships with our customers is a top priority not only for me, but for my entire leadership team. We’ll be spending a lot of time traveling and meeting with our customers and helping them to meet their global security requirements amid very difficult and challenging budget pressures.

I’m excited about the future. As we increase our resources and leadership focus on the global marketplace, we’re making a very important commitment and a step forward for Lockheed Martin. And we have the ideal leader to guide us forward in this international business growth into the future. I’m pleased to introduce to you today Pat Dewar, who is our new executive vice president for Lockheed Martin International, and he will report directly to me.

Pat was previously our senior vice president of corporate strategy and business development. He’s a seasoned executive. He has over 28 years with Lockheed Martin and has a very deep understanding of the global customer priorities and needs. He served also as our corporate vice president of international business development, as a European program director for the Medium Extended Air Defense System in Munich, and as chairman of our boards of directors for our divisions that are located in the UK, Spain, Australia, and the UAE.

I’ve worked with Pat for a number of years, and I know that he is the right leader for Lockheed Martin International. He brings a strong vision. He brings the right experience. He brings the right commitment to our customers that will help us be more effective as a partner for both our customers and our teammates around the world.

So it’s now my pleasure to introduce to you Pat to tell you a little bit more about our regional strategies and areas of focus. Pat?

 

PAT DEWAR:         

Thank you, Marillyn, and good afternoon, everyone. We are here to launch Lockheed Martin International, a new organization focused on harnessing the breadth and depth of the five Lockheed Martin businesses and accelerate our product and service delivery around the globe.

Today, Lockheed Martin International is over 6,000 employees doing business in over 70 countries. Last year, the sales of the corporation, as Marillyn indicated, outside the United States was $8 billion, so we are a major exporter of the United States high technology goods and services.

It’s particularly fitting that we make this announcement in London, as Lockheed Martin United Kingdom is our largest international operating company today and delivers products and services from all five Lockheed Martin business areas. The more than 2,000 men and women of LMUK operating from 17 sites are proud to be partners of Her Majesty’s government and are proud to be part of a UK company.

Lockheed Martin International will focus on delivering global security and government solutions to our customers, locally delivered wherever possible with in-country development that addresses long-term sustainable business practices and technical capabilities. We have been doing the right thing here in the United Kingdom. LMUK works with over 500 business partners and suppliers, supporting over 10,000 additional jobs locally. On F-35 alone, we estimate that more than $5 billion have been placed with the British supply chain, and we expect that economic benefits to Her Majesty’s government and the UK supply base to grow as the program enters full production.

We are upgrading the Warrior Armoured Fighting Vehicle for the British army and already see export potential with certain countries in the Middle East. This is a 100 percent British solution and delivery operation. LMUK helps the National Air Traffic System, as Marillyn indicated, safely deliver 2 million commercial flights per year and supports the Royal Mail Delivery of more than 50 million items per day.

Our information technology delivers services to UK citizens and state-of-the-art cyber protection. And we are hiring and training UK engineers and employees, strengthening and growing our local talent. LMUK takes its partnerships seriously, and it represents the value proposition that Lockheed Martin International will bring to our customers worldwide.

In fact, that’s why Lockheed Martin International will be dual-headquartered here in London and in the Washington, D.C., area in Reston, Virginia. We also will enhance our offices in Canberra and Ottawa, Abu Dhabi and Riyadh, Singapore, and we’ll work through regional offices in Tel Aviv, Seoul, Tokyo, and New Delhi, and that’s in addition to the 25 corporate development offices around the globe.

So what sets Lockheed Martin International apart is the strength of our portfolio. From fifth-generation fighters to the world’s most capable integrated air missile defense systems, the most sophisticated spacecraft and ground systems, to cyber security, Lockheed Martin engineers have integrated leading technologies at unmatched value to our customers.

As an example of this portfolio’s breadth, the F-35 will have as many international airplanes ordered in the next five years as U.S. jets. Our air and missile defense systems, including Aegis, PAC-3, and THAAD, are all in production. They’re being delivered and operational for customers around the globe.

The C-130J remains the transport aircraft of choice for nations around the globe, and C-130s are meeting the airlift delivery needs for 72 countries today. The F-16 continues to be the frontline fighter and multi-role aircraft for 26 nations. Over 4,500 aircraft have been produced to date, and along with continuing production, there are multiple customers doing major aircraft upgrades of their fleets.

With their initial deployment to the Asia Pacific theater, the Littoral Combat Ship offers an international navy a unique combination of speed, flexibility, and power. It’s a multi-mission design well suited to nations looking to secure their sovereign waters. And as for cyber security and IT systems, we have been delivering efficient and effective solutions for government and citizen services across many companies and countries, protecting networks and infrastructure. So these are just a few of the examples of the value proposition that we’re going to be able to deliver to customers in an enhanced way going forward.

So through Lockheed Martin International, we make these commitments to our customers. We will work directly with them to tailor our country and regional solutions that meet their individual needs. Each customer has a unique requirement, a unique objective, and unique challenges. Lockheed Martin International will listen and collaboratively develop the right answer to deliver the solution, delivered locally as much as possible.

As Lockheed Martin has always done, Lockheed Martin International will be a true partner. LM International will provide leadership focus and global and local perspectives to fully resource our partnerships and resource our ventures in order to benefit our customers and to grow our business.

And finally, Lockheed Martin International will deliver. Lockheed Martin has mission success in its DNA. Lockheed Martin International will be no different. Performance is the hallmark of our brand. Lockheed Martin and Lockheed Martin International will take our customers’ most difficult and sensitive challenges and deliver on our commitments.

So we are excited to take this next step, ensuring our global customers’ most urgent requirements are met with focused leadership, focused resources, and delivered solutions locally. We will help to build a better future.

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Chief Executive Officer and President Marillyn A. Hewson


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Executive Vice President, Lockheed Martin International Patrick M. Dewar


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Chief Executive Officer and President Marillyn A. Hewson at the Lockheed Martin International Launch event


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Executive Vice President, Lockheed Martin International Patrick M. Dewar at the Lockheed Martin International Launch event