Lockheed, Pentagon reach 7 billion dollar deal on 71 more F-35s

(Reuters) – Lockheed Martin Corp and the Pentagon have reached agreement on orders for the next two batches of F-35 fighter jets, a deal worth over $7 billion, a person briefed on the discussions told Reuters on Monday.

The deal covers 71 of the radar-evading planes, with 36 jets to be purchased in the sixth production lot, and 35 in the seventh. The total includes 60 F-35s for the U.S. military, and 11 for Australia, Italy, Turkey and Britain.

The agreement is good news for Lockheed, which generates about 15 percent of its revenues from the F-35 program, and its key suppliers: Northrop Grumman Corp and Britain’s BAE Systems Plc. At a projected procurement and development cost of $392 billion, it is the Pentagon’s biggest arms program.

The agreement was negotiated without factoring across-the-board budget cuts imposed on the Pentagon in March, said the source, who was not authorized to speak publicly.

Read More

Recent Posts