Lockheed Drops as Trump Tweets F-35 Costs Are 'Out of Control'

Dec. 12, 2016
President-elect Trump complains about cost of F-35 fighter.

Lockheed Martin Corp. dropped as much 3.4% in premarket trading after President-elect Donald Trump tweeted on Monday that costs for the F-35 fighter-jet program are “out of control.”

“Billions of dollars can and will be saved on military (and other) purchases after January 20th,” the post continued, referring to inauguration day. The tweet followed similar comments the president-elect made on “Fox News Sunday.”

Shares of the Bethesda, Maryland-based company fell to as low as $250.75 in premarket trading.

The multiservice, $379 billion program is the costliest U.S. weapons program. Like many expensive weapons systems, the F-35 had been plagued by delays and cost overruns. The Pentagon in October said it would need as much as $530 million extra to finish the fighter’s development phase. Approving the added funds would probably be the first F-35 decision to reach the desk of the next defense secretary.

by Julie Johnsson

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Licensed content from Bloomberg, copyright 2016.

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