F-35 fighter jet deliveries fall as Lockheed’s woes grow

The Pentagon's biggest weapons supplier missed the target for its flagship fighter jet amid a scathing attack from the US president Donald Trump over costs.

An F-35 Lightning II, built by Lockheed Martin, at the Joint Reserve Base, Fort Worth, Texas. The weapons maker delivered fewer of the fighter jet than it expected last year. Keith Simmons / AFP

The US weapons and aircraft maker Lockheed Martin said on Tuesday it delivered fewer F-35 jets in 2016 than it estimated and also said it expected to report a material weakness in internal control over financial reporting at its Sikorsky helicopters business.

The company said total net sales rose to US$13.75 billion in the fourth quarter ended Decemeber 31, from $11.52bn a year earlier.

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, that could result in misstatement of a company’s financial statements.

Lockheed, the Pentagon’s biggest weapons supplier, said that so far no material errors in the financial results or balances had been identified due to the control deficiencies at Sikorsky.

Lockheed also said there was change in its previously reported financial statements due to the control deficiencies.

The company, whose F-35 fighter jet programme has been criticised by the US president Donald Trump as too expensive, said it delivered 46 F-35s in 2016, less than the 53 it had expected to deliver.

Lockheed said it expected 2017 net sales to rise 4.6 to 7.1 per cent, compared with a previous forecast of a 7 per cent increase. It forecast 2017 earnings of $12.25 to $12.55 per share.

Analysts on average were expecting a profit of $12.87 per share on an near 5 percent increase in sales, according to Reuters.

Net earnings from continuing operations rose to $959 million, or $3.25 per share, from $817 million, or $2.63 per share.

Analysts on average were expecting a profit of $3.06 per share on revenue of $13.03bn.

* Reuters

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