Jul. 31, 2014, 7:11 AM
- Chief of Staff General Mark Welsh says a memorandum is now being drafted that will allow information to be easily shared and determine which parties need to be involved in case of another Lockheed Martin (NYSE:LMT) F-35 malfunction.
- The need for communication is a result of the F-35 engine fire incident in June that caused the jet to miss its first international debut at two U.K. air shows.
- "The F-35 has now flown 8,700 sorties over 14,000 flight hours, and this is the first time we've had a major engine fire," says Welsh. "I'm confident that the program will remain on track and that we'll reach initial operational capability in December 2016. This fire's not going to affect that."
- The $400B F-35 program is the world's costliest weapons project.
Jul. 22, 2014, 10:10 AM
- Lockheed Martin (LMT +2.4%) has announced that the investigation into the engine failure that has grounded the F-35 for almost a month is still ongoing, but is confident it will get resolved soon.
- "The safety investigation board is still undergoing the analysis," says CFO Bruce Tanner. "I don't believe we are quite at the root cause yet."
- Last week U.S. military officials lifted the flying restriction on the F-35, but limited what the plane could do.
Jul. 22, 2014, 9:39 AM
- Lockheed Martin (LMT +2.1%) announced an increase of Q2 2014 net earnings of $889M, up from $859M Y/Y.
- Net sales fell slightly to $11.3B from $11.4B in the second quarter of 2013.
- Cash from operations increased in Q2 to $977M, compared to $623M Y/Y.
- Lockheed's CEO also announced a new outlook reflecting the company's excellent performance:
- "Based on our solid program execution and operational performance through the first half of the year, we increased our 2014 financial guidance for profit, earnings, and cash flow," says CEO Marillyn Hewson. "Our sound strategy, diverse portfolio and focus on affordability are yielding results and delivering value to our customers and shareholders."
- The company raised the financial outlook for its FAS/CAS pension income and cash from operations by $100M, and increased its full-year earnings outlook to a range of $10.85 to $11.15 per share - compared to the previous $10.96 per share.
- Q2 earnings
Jul. 22, 2014, 7:30 AM
Jul. 21, 2014, 5:30 PM
Jul. 21, 2014, 10:41 AM| 11 Comments
Jul. 16, 2014, 9:05 AM
- Lockheed Martin (NYSE:LMT) has received a signed letter of intent from ASL Aviation, an Irish aviation services company, to purchase up to 10 LM-100J commercial cargo planes. The agreement makes ASL Aviation the first buyer of a 75 unit fleet Lockheed expects to produce.
- The plane is identical to Lockheed's C-130J military transport and cargo plane (without the military equipment) and is priced in the mid-$60M range.
Jul. 15, 2014, 6:30 PM
- The U.S. Defense Department says it will not send its advanced F-35 jet fighter to the U.K. for a long-awaited international debut because of lingering concerns about an engine fire that raised concerns about the safety of the next generation fighter jets.
- While the military cleared the F-35 for limited flights earlier today, the Pentagon says the restrictions made it impossible to fly the plane to the U.K. to take part in the Farnborough airshow now under way.
- The cancellation is a blow to the Pentagon's most expensive military program, as well as to Lockheed Martin (NYSE:LMT), which makes the F-35, and United Technologies (NYSE:UTX) unit Pratt Whitney, which makes the engines.
Jul. 15, 2014, 8:10 AM
- The no-fly ban on the Lockheed Martin's (NYSE:LMT) F-35 has been lifted, clearing the fighter jet for flight. The warplane was previously grounded after an engine caught fire in Florida last month.
- Pratt & Whitney (NYSE:UTX), the manufacturer of the engine, is breathing a sigh of relief as it now seems the engine malfunction is not a systematic defect.
- The news also boosts the chances of the F-35 making an appearance at the Farnborough Airshow this week. The expo is prime time for international exposure and missing the show could put a dent into sales.
Jul. 11, 2014, 7:09 AM
- The Lockheed Martin (LMT) F-35 remains grounded, and will most likely miss its other international air shows in the U.K next week, although the Pentagon states that the June malfunction causing an engine fire is likely not a systematic issue.
- "We really want to get at the root cause of this to determine exactly what caused it," says Defense Undersecretary Frank Kendall. "There's a growing body of evidence that this may have been an individual situation, not a systemic one. But we don't know that for certain at this point in time."
- The fighter jet's engine is manufactured by Pratt & Whitney (UTX).
Jul. 10, 2014, 11:16 AM
- Lockheed Martin's (LMT +0.1%) F-35 will miss its first scheduled air show in Britain - the Royal International Air Tattoo. There is still a chance it will arrive at its second show next week, although all jets are currently grounded due to the engine fire incident which occurred earlier this month.
- The missed debut can spell trouble for the new warplane, as air shows are prime time to attract new customers and orders.
Jul. 10, 2014, 9:03 AM
- Lockheed Martin (LMT) states industry investment of $170M over the next two years will result in $1.8B in savings for the F-35 Joint Strike Fighter program, cutting the cost of each fighter jet by about $10M to about $80M.
- The announcement comes after the Pentagon's release of the "Blueprint for Affordability" project, stating that Lockheed and two main subcontractors, Northrop Grumman (NOC) and BAE Systems (BAESY), will only recover their investment and any profit if cost reductions to the jet were made.
- There is still no word if the F-35 will be making its debut at two international air shows tomorrow and next week in the U.K.
Jul. 9, 2014, 11:11 AM
- Lockheed Martin's (LMT +0.3%) F-35 fighter jet may miss its first air show this week, but will probably be cleared in time to fly to its second show outside London next week, says British Defense Secretary Philip Hammond in the latest update regarding the grounded warplane.
- Hammond also declared Britain's commitment to the F-35 program, noting it was still in its developmental stage.
Jul. 9, 2014, 7:12 AM
- A decision has still not been reached over whether to allow the Lockheed Martin (LMT) F-35 to debut at two international air shows this Friday and next week. The popular air shows will allow foreign customers to get a good look at the warplane with the hope of increasing sales.
- The entire F-35 fleet was grounded following an engine fire in Florida this past week, and mandatory inspections had been imposed on each of the plane's Pratt & Whitney-made (UTX) engine.
- Previous coverage
Jul. 8, 2014, 9:13 AM
Jul. 8, 2014, 1:45 AM
- Most Lockheed Martin (LMT) F-35 fighter jets have been inspected, after the entire fleet was grounded last week. The U.S. military had suspended all flights after an engine broke apart and caught fire at an Air Force Base in Florida.
- The incident has put contract negotiations for the next batch of fighter jets and engines on hold. The warplane's engine is manufactured by Pratt & Whitney (UTX).
- The F-35 was also supposed to make its international debut at two air shows in Britain on Friday and next week, although no decision has yet been made on whether to allow the jets to fly to Britain.
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Lockheed Martin Corp is a security and aerospace company engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products.
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