Reuters: USAF, Lockheed Strike Verbal C-130J Production Deal

AC130JLockheed Martin (NYSE: LMT) and the U.S. Air Force have a verbal agreement in place on a five-year production contract for C-130J Super Hercules aircraft, a company spokesperson said in an interview with Reuters posted Thursday.

Joe LaMarca told Reuters the multi-year II contract covers the production of up to 83 transport planes for the service branch, Marine Corps and Coast Guard.

Andrea Shalal writes that Lockheed expects to close the deal with the military branch later this year once it completes congressional notifications and certifications.

The Defense Department started negotiations on a deal for a batch of C-130J planes in 2013 and pegged the value of 79 aircraft at $5.9 billion at the time, Reuters said.

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