Lockheed Martin Corp (NYSE:LMT) has bagged a United States Navy contract to purchase titanium and a host of other materials to build the latest batch of F-35 fighters. The total value of the contract is about $1.17 billion.
The effort towards advance acquisition includes a total 80 F-35A aircraft. Of the total 80, 28 is earmarked for US Air Force. The rest is scattered between Norway (six aircraft), Turkey (Four aircraft), Netherlands (eight aircraft), and Australia (eight aircraft). Israel, Japan, and South Korea get 10 aircraft each. The contract is also inclusive of seven F-35B aircraft and four F-35C aircraft. One F-35B will be sold to the United Kingdom. This contract is inclusive of an indefinite contract action regarding the production of two F-35A for US Air Force and F-35C aircraft for US Navy.
Apart from this significant win, the unit from Lockheed Martin Aeronautics won a modification contract of $84.4 million value. This includes cost and an additional fixed fee contract for modification linked to the Lot 9 F-35 Lightning II Joint Strike Fighter. The acquisition contract is for procurement of the non-recurring items of production. This contract encompasses special test equipment and tooling important to meet present and future rates of production for US Navy, US Air Force, and the US Marine Corps. Non US DoD participants are also included.
The work will be done at a number of locations. Fort Worth in Texas will witness a majority of the work (55 percent), followed by El Segundo in California (15 percent). The list of other locations includes the United Kingdom at 10 percent, Orlando in Florida at five percent, Nashua in New Hampshire, Baltimore in Maryland, and Nagoya at Japan all three clocking five percent.
Lockheed Martin is counted as the biggest US defense contractor. The company has a platform-centric focus which guarantees an inflow of many follow-on orders from leveraged presence in Air Force, Army, and Navy programs. The company estimates its 2016 organic growth to be spearheaded by its Aeronautics segment. It has high hopes from the F-35 program.
According to the Pentagon, Lockheed Martin has achieved its delivery target of 45 F-35 fighters to the American government and its important allies in 2015. The figure is a 25 percent rise from 2014, thus bringing the total count of jets delivered to customers at 154. It is estimated that the company will exceed 50 deliveries in 2016.