Lockheed: Fewer JSF Buys Won't Do Much Harm To Program's Bottom Line

摘要

The impact of a proposed reduction in Air Force and Navy F-35 buys is not inconsequential for prime contractor Lockheed Martin, but it also will not have a significant impact on the Joint Strike Fighter program's cost, according to a company executive. In their fiscal year 2015 budget proposals, both services laid out plans to reduce the rate at which they buy their service-specific F-35 variants over the next several years ~ the Air Force by just five aircraft and the Navy by 29 aircraft through FY-18. Jerry Kircher, Lockheed's vice president of investor relations, said during an April 22 quarterly earnings call that the reductions will likely impact the cost performance of the sixth and seventh production lots, but added that the company will mitigate that impact by reducing overhead where it can.