Lockheed Expecting New USAF Contract for F-35 Jets; Orlando Carvalho Comments


F35Lockheed Martin (NYSE: LMT) is set to secure a deal to provide the U.S. government with 43 additional F-35 fighter aircraft, but with less price reductions compared to previous orders, Reuters reported Monday.

Andrea Shalal reports a U.S. Air Force contract with Lockheed is expected before the end of June, according to Orlando Carvalho, the company’s aeronautics division executive vice president.

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Carvalho and other sources said negotiations are ongoing with Lockheed and United Technologies‘ (NYSE: UTX) Pratt & Whitney, an engine manufacturing firm.

Lockheed deducted 4 to 5 percent from the order price in the past three F-35 contracts, but the order quantity for the upcoming contract has not significantly increased to warrant the same amount, writes Shalal.

“I’m not sure we will get to that level, but I do expect we’ll have a reduction from the previous lot on an aircraft-to-aircraft basis, ” Bruce Tanner, Lockheed’s chief financial officer, told Reuters.

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