Lockheed Martin Secures $6.1 Billion F-35 Contract
02 Novembre 2016 - 11:50PM
Dow Jones News
The Pentagon on Wednesday awarded Lockheed Martin Corp. a $6.1
billion deal for the next batch of F-35 fighter jets, triggering an
unusual rebuke from the defense contractor over the terms and
timing.
The deal for the ninth batch of the stealthy fighters covers 57
jets for the U.S. and some foreign air forces, with talks
continuing on another contract involving more than 100 planes.
Lockheed has been in negotiations with the Pentagon for 18
months about a combined deal for 160 jets covering two years of
production, and the two sides had hoped to reach agreement in early
2016.
But negotiations over price and other issues dragged on longer
than expected as the Pentagon tries to cut the cost of the F-35A
model used by the U.S. Air Force to around $80 million by the end
of the decade, and The Wall Street Journal reported last week that
the order would be split.
Lockheed said in a statement Wednesday that the new deal was
imposed on it.
"We are disappointed with the decision by the Government to
issue a unilateral contract action on the F-35 [latest] contract,"
said the company.
Negotiating F-35 deals in bigger batches was intended to cut the
Pentagon's price and help Lockheed and its partners negotiate
better deals with their suppliers.
The F-35 accounts for 23% of Lockheed's revenue and is an
important contributor to sales and earnings at other companies
including Northrop Grumman Corp. and BAE Systems PLC, as well as
dozens of smaller contractors.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
November 02, 2016 18:35 ET (22:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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