F-35 delivery to be affected during slowed Lockheed Martin production
BETHESDA, Md. Lockheed Martin expects lower sales and slower deliveries for some of its programs in in the coming months — particularly the F-35. In an earnings call, Marillyn Hewson, Lockheed's chairman, president, and CEO, said the company has reduced its 2020 sales expectations due to disruptions caused by the COVID-19 pandemic.
Ken Possenriede, Lockheed's chief financial officer, said the F-35 program has been the hardest hit by the pandemic due to problems with the supply chain, workforce disruption, and shipping constraints among other issues.
Lockheed Martin supplies aircraft including the F-35, the C-130J, the C-5, and missiles and fire control programs for the Pentagon and allied militaries around the world. The company said it is beginning to experience some issues in each of its business areas related to COVID-19, primarily in access to some locations and delays of supplier deliveries.
Net sales for the F-35 program were up $695 million, and operating profit for the program increased by $80 million — about the amount of money it costs to produce one F-35, according to the company.