Robert H. Smith School of Business
The Motley Fool

Market Foolery Featured Podcasts

  • MarketFoolery: 09.17.2014
    Morgan Housel analyzes the best way to think about trends, what Scotland’s independence means for investors and what to do in DC.
  • MarketFoolery: 09.16.2014
    On today’s show the guys try to figure out what the future may hold for sears, what Microsoft plans to do with Minecraft, and which fall beer is the best.
  • MarketFoolery: 09.15.2014
    We dig into the Fool Mailbag to answer listener questions about GoPro, Vail Resorts and how to balance “buy & hold” with an opportunistic cash balance.  
Capital Business
Posted at 10:21 AM ET, 10/08/2012

Lockheed splits electronic systems business in two

Lockheed Martin’s logo. (Chris Ratcliffe - BLOOMBERG)
Contracting giant Lockheed Martin said Monday it will split its Bethesda- based electronic systems business into two new units, Missiles and Fire Control and Mission Systems and Training, and eliminate about 200 jobs.

The move follows the appointment of Marillyn A. Hewson, who now heads electronic systems, as the company’s president and chief operating officer. The new split goes into effect Dec. 31, one day before she takes over those roles.

It also comes as many in the industry are reshaping their businesses. Perhaps most prominently, McLean-based Science Applications International Corp. is dividing its business into two separate public companies. Others are making smaller moves, such as acquiring small companies or spinning off divisions.

In its announcement today, Lockheed said it will now have five business areas. The company said the change is expected to save $50 million annually by eliminating the management teams of the electronic systems business and the Global Training and Logistics business unit, whose work will be split between the two remaining units.

The company expects to eliminate about 200 jobs, about one-third of which will be executive positions, according to a Lockheed spokeswoman.

Under the new structure, the 19,000-employee Mission Systems and Training unit will be based in the District and handle programs like the Littoral Combat Ship, helicopter avionics and military training systems, while the 16,000-employee Missiles and Fire Control business will be based in Dallas and work on the Joint Light Tactical Vehicle program, among others.

Lockheed has named Dale Bennett to head the mission systems unit and Rick Edwards to lead the missiles business.

By  |  10:21 AM ET, 10/08/2012

Categories:  Movies | Tags:  Lockheed Martin, defense contractor, government contracting, SAIC, divest, split, Marillyn Hewson

Read what others are saying

    © 2011 The Washington Post Company