Lockheed Martin Maintains F-35 Pricing Plan

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 [e-mail]

(END) Dow Jones Newswires

January 24, 2017 12:04 ET (17:04 GMT)

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