Business Units

The summer doldrums came during the spring for Lockheed Martin Corp., which yesterday reported a tepid 3 percent increase in second-quarter profit compared with the same period last year.Net income for the quarter was $308 million, up from last year's $299 million. That translated to $1.59 a share, up 6 percent from the $1.50 a share for second quarter 1996.Overall sales were down 3 percent, to $6.9 billion from $7.1 billion a year ago, so the fact that profits rose at all meant margins were up.The seemingly anemic performance was about on target with what analysts expected.

Spring may seem a long way off, but life is stirring at Lockheed Martin Corp.'s historic aircraft facility in Middle River.The sometimes beleaguered factory has struck a pair of significant business deals this month and opened a metal-working shop in Florida."

Lockheed Martin Corp. will spin off 10 business units with 4,900 employees as part of a corporate restructuring, the company said yesterday.The business units, which had combined revenues last year of $650 million, will create a new company called L3 Communications, based in New York City.Lockheed Martin's Bethesda headquarters declined to release financial details of the transaction, which it said would be subject to a definitive purchase agreement and regulatory approvals.The deal should close by the end of the first quarter, the company said.

MOUNTAIN VIEW, Calif. -- Sun Microsystems Inc. said yesterday that it has agreed to buy Cray Research Inc.'s business computer unit in a move to expand its product line to include powerful machines for controlling giant networks.Terms weren't disclosed.Sun, which specializes in making computers that control the flow of information through corporate networks, said the purchase will increase its expertise in making computers that can handle huge amounts of data.With the purchase of Cray Research Business Systems, Sun would acquire the CS6400 server, a powerful network computer that is designed to run software written for Sun computers.

Polk Audio Inc., a Baltimore-based manufacturer of high-end loudspeakers, yesterday announced a restructuring of its operations and the appointment of a president.The new president, James M. Herd, takes over the day-to-day operations of the company, a duty formerly shared by Matthew S. Polk Jr., the chairman, and George M. Klopfer, the chief executive. Mr. Herd has been with the company for four years.Mr. Polk and Mr. Klopfer, founders of the company, will direct their attention to general policy-making and long-range planning, the company said.

EA Engineering, Science and Technology Inc. yesterday announced a major restructuring of the company into four "mega" business units, down from seven smaller units.The growth of the Hunt Valley firm, which helps companies clean or prevent environmental problems, has slowed due to the Republican takeover of Congress, said Loren D. Jensen, EA's chairman, president and chief executive.Many potential clients are now "standing on the sidelines" waiting to see whether relaxed environmental controls proposed the Republican majority actually go through, Mr. Jensen said.

When golfers tee off Monday afternoon at the Don Nave Memorial Golf Tournament, the true winner in the competition probably won't set foot on the greens.The annual tourney will raise scholarship money for a South Carroll High School athlete who will graduate in June.Don Nave was a local builder who was killed in a traffic accident in March 1994.His wife, Judith, said her late husband taught at South Carroll High School from its opening to 1976. Coaching football at South Carroll High was one of his favorite activities while he was a teacher.

BOSTON -- Robert B. Palmer, the new president and chief executive of the Digital Equipment Corp., said yesterday that the company was being restructured into eight to 10 "customer-focused" business units by the end of the year.Managers of the individual units would have "complete responsibility for business strategy, investments, revenue generation and profit and loss statements," he said.Addressing the company's first annual meeting of shareholders since he succeeded Digital's founder, Kenneth H. Olsen, in July, Palmer said he would announce the specific units and the executives in charge of each by the end of December.

WESTMINSTER -- Spiffing up historic Sykesville wasn't enough to attract tourists and shoppers, Town Manager James Schumacher said."It's like we're all dressed up and no place to go," he told a group of 15 business owners, town officials and others who gathered Thursday to discuss downtown development."

You can hear the compassion in her voice, and you somehow know that her caring is sincere.It's a useful quality to have as the vice president of Community Services for United Way of Central Maryland.Marlene McLaurin's primary role at United Way is to target resources to meet needs, that is, match up dollars and human resources with the greatest needs. She directs the distribution of funds, allocating $11 to $12 million per year to 54 United Way agencies for their programs and services.The United Way provides funding to organization which provide direct services, like the YWCA and YMCA, the Boy Scouts and Girl Scouts, the House of Ruth, Parents Anonymous, the Association for Retarded Citizens, Meals on Wheels and programs for the elderly, handicapped and illiterate.