Lockheed Martin to review its ATM business

Lockheed Martin is deciding whether to sell or spin off its ATM business as part of a strategic review of its government IT and technical services.

The five business units which are under review represent roughly $6 billion in estimated 2015 annual sales and more than 17,000 employees.

“As global security market dynamics shift, this review will strengthen our competitive posture, enabling sustained, profitable growth and positioning Lockheed Martin to deliver value for customers, shareholders and employees,” Lockheed Martin CEO Marillyn Hewson said at the business’s second quarter financial results.

Hewson said the strategic review will be completed this year and “could result in one or more transactions” involving the targeted businesses. “There’s a number of possible scenarios,” she told analysts.

Lockheed Martin’s En Route Automation Modernization (ERAM) system finally replaced the Host computer system to manage traffic at all US area control centres in April – after nearly five years of delays and USD$370 million in cost overruns.

ERAM is now the backbone of operations at 20 of the Federal Aviation Administration’s (FAA’s) centres, driving display screens used by air traffic controllers to manage and separate aircraft.

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