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Lockheed Martin CEO on cost-cutting

Tuesday, September 07, 2010 - 04:12

Sept. 7 - Lockheed Martin CEO Robert Stevens says despite cost cutting, the defense industry will survive based on new global security needs and adds that Lockheed's portfolio is well positioned for change.

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on big weapons purchases. -- statements that Chief Executive Officer of smoky mountain . Spoken -- reporters at the Reuters aerospace and defense summit in Washington -- he joins me now to -- inspired by much these two challenges of the world economy and global security how -- smoky mountain achieve growth. And in that environment what we think our portfolio is very well positioned to meet the demands of the 21 century. Even under conditions of leaner economic times. We look back at the quadrennial defense review . Our systems -- a very high level of need under that prior organization evaluation. We're well supported in the budget. We focus away. And yet we're facing new threats like the challenges of the cyber security domain. We all have to prepare a portfolio of capabilities that can address the new and emerging challenges as well as those on polls are you ready for the EC rule of acquisitions in cyber security there is to position your company well I think we're ready for that inside the company we've been thinking through these circumstances for joining us today thank you but I was -- agency smoky mountain . I'm -- and yet this is Alex's. The US defense industry is based bracing for leaner times that the Pentagon winds down in Iraq and cut back on big weapons purchases. -- statements that Chief Executive Officer of smoky mountain . Spoken -- reporters at the Reuters aerospace and defense summit in Washington -- he joins me now to -- inspired by much more anger but joining us today. It is leaner times for the defense industry do you think that the industry as a whole is ready for those in at times has it made it necessary adjustments in defense stocks have suffered. In recent is this as people adjust to this new environment that the global economy the global economic outlook is. Is on sentences. Well I think that the industry is recognizing -- new reality today where there are significant economic pressures around the globe. But there's also a sustained need to assure that we provide for the right security solutions for a very complicated 21 century so I think you're going to watch -- industry. At the early phases of the adaptation. That will be necessary to reconcile these two challenges of the world economy and global security how -- smoky mountain achieve growth. And in that environment what we think our portfolio is very well positioned to meet the demands of the 21 century. Even under conditions of leaner economic times. We look back at the quadrennial defense review . Our systems -- a very high level of need under that prior organization evaluation. We're well supported in the budget. We focus on execution excellence because we know that we've got deliver greater levels of value under periods of greater stress on economic. Sources you mentioned the changing global security environment and what is changing well the outlook for the next ten or twenty years. What do you -- is the big differences from all came before you'll company. React to that has changed a couple of sentences about the changes in the landscape but think the first observation is that. Persistent threats and those that are been more familiar to us piracy conventional arms build up they are really going away. And yet we're facing new threats like the challenges of the cyber security domain. We all have to prepare a portfolio of capabilities that can address the new and emerging challenges as well as those -- more familiar to us. I think we also have a sense that if we look back at the last ten years perhaps. Resource allocation approach is favored land forces which makes a great deal of sense considering our posturing Iraq and Afghanistan. Maybe over the next ten or twenty years will see -- reallocation to some degree of those resources into it naval and air forces. As a recapitalization. Process on polls are you ready for the EC rule of acquisitions in cyber security there is to position your company well I think we're ready for that inside the company we've been thinking through these circumstances for quite some time now we're building our own organic capability here. The the desirability of an acquisition depends on what value it brings to the company relative to -- com competency story yeah. A position in the marketplace the economic value also the cultural value whether. Businesses have the right ethics or integrity so we take all those things into account but I like our portfolio very much today and I believe we are very well positioned to be not only the traditional historic demands that the -- And finally just quickly on the international environment you're looking to grow internationally when you see that growth coming from a -- come from all the segments of our business. A particularly aeronautics. Today we have the F 35 program but. We're still active in the international campaigns for the F sixteen in the C 130. Missile defense systems I think are going to be hugely needed in the 21 century because this is an area where. The threat technology proliferate very rapidly sort missile defense system. We're very interest of mullah -- combat ship that they program were competing for today. And I don't -- presume the outcome but we are certainly ready. To support Canadian that recapitalization. With morals decisions thank you very much for joining us today thank you but I was -- agency smoky mountain . I'm -- and yet this is Alex's.

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Lockheed Martin CEO on cost-cutting

Tuesday, September 07, 2010 - 04:12