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Lockheed Martin's trillion dollar headache

Thursday, July 12, 2012 - 04:05

July 12 - The Joint Strike Fighter could cost $1.45tln over its lifetime, but for lead contractor Lockheed Martin the runaway costs are turning into a major headache. We talk to COO-elect Marillyn Hewson.

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It's the biggest and costliest single defense project in history. But the joint strike fighter you can see behind me also comes with some Jumbo sized problems for main contractor Lockheed Martin not least of course the plane from. Doubled since the profit again. Earlier I sat down with the president and CEO next we'll be on an hour and keeps it up again by Austin wolf that. But she could now -- old colts one. We'll certainly have the costs. Joint strike fighter is is around with the volume means for them. The programs. War dinners that we produce -- over the cost. Amid how having gone through the this constitution to actually had a large number of oldest human that was whittled down with them with them. You must. The history doesn't repeat itself well. -- Actually there's a strong demand for the -- Time and the international community sort of you know it's not just for domestic sales that we have with the US government that certainly are. Eight partners and our security cooperation partners with Japan and Israel as well as other countries that are. But we're currently participating in Korean FSX opportunity and -- other countries that are also very much interest in the F 35 and as US government determines that they can purchase the joint strike fighter and so I'm certain that we'll have an opportunity to -- what. He tells them stunned by the Korean competition. You optimistic. Of course. Angry at a very strong offering with the F 35 and we submit -- Proposal in June so we'll wait to see them go through a process. But this whole situation in the eurozone much more complicated. Is an ethical sort of -- -- -- Netherlands. Very controversial that outsiders and -- in Europe boy it also some atrocities UK flip flopping on its plans. We will what is your assessment all of them like a thousand year. In Europe. I think sales for the F thirty for -- that -- yes for the F 35 and continued sales will be strong I mean certainly each country has to do with what their situation is and we'll work. Through the US government and and you know let them make their decisions and move forward that I think our our partners have reasserted their commitment to the F 35 and we expect that to continue and as I said we have. Other. Security cooperation partners. Stepped up for the F 35 so we are confident that we'll continue to sell -- product. What discussions and even with -- European club customers in terms of running out of ways that you couldn't. Re schedule and help them in some ways with with the cost of this fine. Well we worked through day US government on on you know. The F 35. Discussions that we have with our our partners and so that's how -- And that would be a better question for -- I think just quickly the end of it such frustration looming. Budget crisis in the US do you expect from eleventh round you. To avoid the situation. I certainly hope that that our lawmakers will address sequestration because it can have a very devastating impact on our industry. And our suppliers and frankly and more importantly it will impact our. Our national security so -- I'm I'm certainly hopeful for that and we have been vocal and and trying to raise awareness around the consequences of an automatic budget. And I I can see signs that through the dialogue around that there's a strong potential that's that it will be entrance to call it such devastation can qualify so. Well when you talk about across the board cut and across all programs. And the fact that you know we have. Many many suppliers both domestically and internationally -- at 16100 international suppliers that could be potentially impacted in some way by sequestration. And you have a cut of that nature is going. Flip through the base and we'll have that we'll have layoffs and we'll have to make some very significant decisions and are spending decisions as a as a company to address.

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Lockheed Martin's trillion dollar headache

Thursday, July 12, 2012 - 04:05