Defence contractor Lockheed Martin reported its first-quarter earnings on Tuesday ahead of the bell on Wall Street, seeing increased revenue in its aeronautical business, which includes the F35 program much maligned by President Donald Trump.Interesting.
The company lowered its full-year earnings outlook however, sending the shares lower in early trading in New York.
Net sales rose 7% to $11.06bn in the first three months of the year, aided by an 8% boost in revenue at its aeronautics business, which includes sales of its F35 fighter jet. US President Donald Trump had criticised federal overspending on programs such as the F35. Lockheed's aeronautics operations makes up around 37% of its business.
This is all guessing on my part but I'm betting that earning boost from its aeroautics division came from the extravagantely expensive CH-53K and not from the F-35 like the writer implies.
Additionally with the earning outlook being lowered for the year I'm betting that F-35 cuts are already being factored in. Something is happening behind the scenes.
Have you noticed that we got no word and NO DEFENSE REPORTER has asked about the study of the Super Hornet vs F-35 for the Navy that Mattis requested? Have you noticed that we got no word and NO DEFENSE REPORTER has asked about proposals from the USAF for upgraded F-15s, F-16s and even Arsenal Planes?
This turkey is slowly but surely being seen for what it is by policy makers. Trump might be calling it a great plane so he doesn't spook our allies but the US military (except for the USMC) is already looking at plan B's.