Lockheed Martin Maintains F-35 Pricing Plan
January 24 2017 - 12:19PM
Dow Jones News
By Doug Cameron
Lockheed Martin Corp. said it expects the next batch of F-35
combat jets to be priced at less than $100 million each, a target
that is in line with existing Pentagon plans.
The world's largest defense company expects to deliver 66 of the
planes this year compared with 46 last year and remains in talks
with the Pentagon over a contract for 90 jets for the U.S. and some
overseas buyers.
Lockheed Chief Executive Marillyn Hewson has met twice with
President Donald Trump after he criticized the cost of the F-35
program. Ms. Hewson has committed to bringing down the price.
Ms. Hewson said on an investor call that the price of the F-35A
models being used by the U.S. Air Force and most overseas buyers
would fall below $100 million. This compares with $102 million for
the previous order and is in line with the Pentagon's target for a
6% to 7% sequential drop.
She also said the F-35 plan still calls for the price of the
most common model to fall to around $85 million in
inflation-adjusted dollars by 2019, in line with existing Pentagon
plans.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
January 24, 2017 12:04 ET (17:04 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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