Lockheed: The World's Most Expensive Weapon

10/12/17

Recently, Lockheed Martin (NYSE:LMT) has come under scrutiny for the extreme costs to the U.S. government for its recent F-35 Lightning II Joint Strike Fighter. It is estimated that the price tag on one jet is 94.6 million dollars. President Trump recently said that the price is much too high. According to the Wall Street Journal, the cost cutting programs are intended to reduce the per unit cost to 80 million by 2020. Through joint programs between Lockheed, its partners and the U.S. government, the firm is working to lowering production costs. These cost reductions will probably come from greater efficiency, not from Lockheed sacrificing margins.

That said, in nearly all other cases, investors would run for the hills if they owned a firm that derives 23% of all revenue from a product deemed too expensive by its single largest buyer. Why is Lockheed Martin different?

READ FULL ARTICLE HERE

It's on us. Share your news here.

Submit your stories and articles to citybizlist today.

Baltimore Business Spotlight

Feature Your Business Here

Connect with these Baltimore Professionals on LinkedIn

  • Edwin Warfield

    Editor in Chief, Warfield Digital

    Connect
  • Jean Halle

    Independent Consultant

    Connect
  • Larry Lichtenauer

    President of Lawrence Howard & Associates

    Connect
  • Newt Fowler

    Partner at Womble Carlyle, LLP

    Connect
  • David Crowley

    Owner at Develop DC

    Connect
  • Carolyn Stinson

    Stinson Marketing Group

    Connect