Lockheed Martin stock hit on report Pentagon lowered F-35 order
F-35 is considered the most modern stealth fighter aircraft in the world
Defense Secretary Austin participates in joint press conference with Slovak defense minister
Defense Secretary Austin participates in joint press conference with Slovak defense minister.
Shares of Lockheed Martin tumbled this week following a report that the U.S. Defense Department decided to trim the number of F-35 stealth warplanes from its next budget by 35%.
23 February 2022, Rhineland-Palatinate, Spangdahlem: A U.S. F-35 fighter jet flies over the Eifel Mountains near Spangdahlem. (Photo by Harald Tittel/picture alliance via Getty Images) ((Photo by Harald Tittel/picture alliance via Getty Images) / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LMT | LOCKHEED MARTIN CORP. | 529.41 | +3.66 | +0.70% |
Bloomberg reported Wednesday that sources familiar with the matter claim the Pentagon slashed the number F-35s it plans to request for its 2023 fiscal year budget from 94 to 61. Following the story, Lockheed Martin's stock price fell more than 6%.
DEFENSE SECRETARY AUSTIN STOPS SHORT OF ACCUSING RUSSIA OF WAR CRIMES
The Defense Department declined to comment on the report when contacted by FOX Business, saying that it cannot confirm specific budget details until after the FY23 President’s Budget is released.
An F-35 fighter jet arrives at the Vermont Air National Guard base in South Burlington, Vt., Sept. 19, 2019. (AP Photo/Wilson Ring, File) (AP Photo/Wilson Ring / AP Newsroom)
Lockheed waved off the claims, saying in a statement that "it is premature to speculate about the proposed defense budget prior to its release," adding that "the F-35 is the most lethal, survivable and connected fighter in the world today, and is strengthening our allies, deterring our enemies, and bolstering our economy."
The F-35 is considered the most modern stealth fighter aircraft in the world.
IMPACT OF CHINA LOCKDOWNS ON GLOBAL SUPPLY CHAIN
President Biden is expected to request the highest Pentagon budget in history for the next fiscal year with an ask upward of $770 billion, sources told Reuters last month.
Lockheed Martin F-35 Lightning II flies at Spangdahlem Air Base - ETAD on February 28, 2022 in Spangdahlem, Germany. (Photo by Dietmar Pohlmann/DeFodi Images via Getty Images) ((Photo by Dietmar Pohlmann/DeFodi Images via Getty Images) / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GD | GENERAL DYNAMICS CORP. | 276.44 | -7.57 | -2.67% |
| NOC | NORTHROP GRUMMAN CORP. | 484.75 | -2.84 | -0.58% |
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The outlet noted that the Pentagon seeks to modernize the military, which would give a boost to U.S. defense contractors including Lockheed, General Dynamics and Northrop Grumman.