Lockheed Martin Corporation has reported an 8% drop in net sales in the first quarter of 2022, due to supply chain related challenges and the impact of the recent surge in Covid-19 infections.

In the three-month period that ended on 27 March 2022, the company’s net sales totalled $15bn. The figure was $16.3bn in the same quarter a year ago.

Net earnings marginally dropped year-on-year (YoY) to $1.7bn, or $6.44 per share, in Q1 2022 from $1.8bn, or $6.56 per share, recorded in Q1 2021.

Cash from operations was $1.4bn in the first quarter of 2022, compared to $1.7bn in the same period a year prior.

Lockheed Martin has four business segments, namely Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. Apart from Aeronautics, all segments reported a drop in net sales in the first quarter of the year.

In Q1 2022, Aeronautics’ net sales totalled $6.4bn. The figure was $6.39bn in the previous year.

The quarterly net sales of the MFC and RMS units were $2.45bn and $3.5bn, dropping from $2.75bn and $4.1bn, respectively, on a YoY basis.

The Space segment’s net sales were $2.56bn in the first three months of 2022, compared to $3.01bn recorded in Q1 2021.

Lockheed Martin chairman, president, and CEO James Taiclet said: “Lockheed Martin had a solid start to the year by delivering margin expansion and free cash flow above our expectations, despite recent Covid-surge impacts on our operations and supply chain.

“We remain confident in our guidance for the remainder of the year and our growth outlook beyond.”

The company also reaffirmed its 2022 financial outlook and it expects to generate net sales of $66bn this year.

In February, Lockheed Martin partnered with Microsoft to advance 5G.MIL technologies.