Lockheed Martin Electronics Establishes New Missiles and Fire Control Organization
Move Focuses on Customer Missions, Cost Reduction
BETHESDA, MD, July 8th, 1999 -- The Lockheed Martin Electronics Sector today announced the formation of a new Missiles and Fire Control organization, encompassing the operations of its Electronics & Missiles and Vought Systems businesses in Florida and Texas. James F. Berry, currently president of Dallas-based Vought Systems, will assume additional responsibilities as president of the new organization, which has 8,000 employees and annual sales of approximately $2 billion. Stanley R. Arthur, currently vice president of Washington operations for the Electronics Sector, is appointed president of the Electronics & Missiles business in Orlando. "Bringing together these two successful businesses offers opportunities to achieve significant organizational and operational cost savings, as well as substantial technical synergies across our well-established tactical missile, fire control and sensor, air defense, and strike weapons businesses," said Robert B. Coutts, Electronics Sector president and chief operating officer. "This combination also positions the organization to pursue opportunities in new markets, such as naval munitions, where we will be able to offer customers competitive choices for innovative, cost-effective products and services."
Coutts added: "Creation of the integrated Missiles and Fire Control enterprise is consistent with our objective of better focusing on the specific missions and requirements of the U.S. and international military customers we serve today and will support in the future."
Lockheed Martin Electronics last December established discrete Aerospace Electronics Systems and Naval Electronics and Surveillance Systems segments, encompassing eight operating units with combined annual sales of approximately $4 billion. Four other units comprise the Electronics Platform Integration segment, with annual sales in excess of $1 billion.
"Extending this business segment approach across the Electronics Sector enables us to more effectively concentrate our technical strengths and management attention on superior performance for individual customers, and to provide more capable solutions at lower cost," Coutts said. "The ultimate measure of customer satisfaction is enhanced competitiveness and growth."
Coutts said that both the Electronics & Missiles facility in Orlando and the Vought Systems facility in Dallas will remain open "since each offers unique, world-class capabilities vital for our successful execution of ongoing programs and prospective new business opportunities."
Savings will be achieved through actions including consolidation of the functional staffs in Orlando and Dallas; the exchange and implementation of best practices in areas such as engineering, procurement, and manufacturing; and rationalization of the network of feeder plants that currently support the two businesses.
Over the next 12 months, Berry will evaluate and announce decisions on utilization of the feeder plants, situated in Troy, AL, Camden, AR, Ocala, FL, and El Paso and Lufkin, TX; and other organizational matters.
"Although the effects of this business integration will be transparent to the vast majority of employees in Orlando and Dallas, some positions obviously will be eliminated as staff functions are combined," Coutts said, adding that efforts will be made to place the individuals affected elsewhere in the organization. "Our objective is not to reduce costs by arbitrarily eliminating jobs, but rather to forge a lean, new approach to our work based on the best practices of both businesses. To the extent we are successful in growing the business, we also will succeed in creating jobs."
Berry, 51, has served in executive leadership positions at the Rockwell, Northrop and McDonnell Douglas corporations, in addition to Lockheed Martin. In an aerospace industry career spanning more than three decades, he has held key assignments in operations, program management, and general management. Prior to his appointment as Vought Systems president in 1997, Berry was vice president, technical operations for Lockheed Martin's Electronics Sector. He earned his master's degree in business administration from Pepperdine University, attended the Darden School of Business, and is a licensed engineer in the State of California.
Arthur, 63, has been the Electronics Sector's vice president, Washington operations since 1996, and previously held a similar position with the former Loral Corporation. Before joining Loral, Arthur served for more than 38 years as a U.S. Navy officer, with high-level assignments including Vice Chief of Naval Operations; Commander, U.S. Naval Forces Central Command for Operations in Desert Shield/Desert Storm; and Commander of the U.S. Seventh Fleet. He earned bachelor's degrees in science and aeronautical engineering from Miami University in Ohio and from the U.S. Navy Postgraduate School, respectively and received his master's degree in administration from George Washington University.
Lockheed Martin Electronics, a unit of Lockheed Martin Corporation (NYSE:LMT), designs, develops and produces advanced components and systems for military, civil government, and commercial customers around the world. The Sector had 1998 sales of approximately $7.3 billion, and has operating units in the United States, Canada, and the United Kingdom.
(Bethesda) Peter A. Harrigan - 301-897-6171
(Dallas) Craig Vanbebber - 972-603-1615
(Orlando) Mary Jo Polidore - 407-356-2207
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