Inflation, Supply Problems Could Push F-35 Cost Higher Than Expected, Lockheed Says
Negotiations continue on three batches of jets—Lots 15 to 17—that were expected to be finalized last year.
MARCUS WEISGERBER | APRIL 19, 2022 04:34 PM ET
Rising inflation and pandemic supply chain disruptions could push the cost of the F-35 stealth fighter higher than expected, delaying the Pentagon and Lockheed Martin from reaching a deal for hundreds of new jets, company executives said.
Lockheed also warned that if it does not sign a deal for the new F-35 before July, it could miss its second-quarter earnings projections.
“Our teams are diligently working with their joint program office counterparts to achieve closure on this critical milestone and both parties are striving to finish negotiations in the near term,” Lockheed CFO Jay Malave said Tuesday on the company’s quarterly earnings call. “We remain confident in our full-year projections.”
CEO Jim Taiclet said that inflation and supply issues are affecting the “underlying cost factors” of each jet.
https://www.defenseone.com/business/2022/04/inflation-supply-problems-could-push-f-35-cost-higher-expected-lockheed-says/365856/
