By Zacks Equity Research
The U.S. Department of Defense has announced that it plans to purchase fewer F-35 fighter jets from Lockheed Martin Corp. (LMT – Analyst Report) over the next five years, than it had originally planned.
Pentagon’s Plans for the F-35 Jets
Importantly, the Pentagon was forced to cut approximately $4 billion from the F-35 program and other aircraft programs in fiscal 2017, and slash billions of dollars from other procurement accounts to meet the Congress budget deal.
The Pentagon remains committed to the F-35 Joint Strike Fighter program, worth $391 billion, which is the single largest weapons program. However, purchases for the program are expected to slow down a little over the next five years. The Pentagon’s next five-year plan, beginning fiscal 2017 through fiscal 2020, covers the purchase of 299 jets (down by 37 units from the previous expectation). However, the major spurt in orders is not expected to come until the projected purchase of 105 fighter jets in fiscal 2021.[FULL ARTICLE]