Increase this year's sales by $500 million
The following article from the NY times indicates that the
transaction would increase LMT's sales this year by
$500-$600 million.
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March 6, 2000
Lockheed Deal to Sell F-16's
By BLOOMBERG NEWS
WASHINGTON, March 5 -- The Lockheed Martin Corporation, the
world's No. 1 military contractor, has signed a contract
worth $6.4 billion to sell 80 advanced F-16 fighter jets to
the United Arab Emirates, the company announced today from
Abu Dhabi, the capital of the United Arab Emirates.
The contract concludes nearly two years of negotiations
between Lockheed, the Air Force and the United Arab
Emirates. It is a huge lift in an otherwise bleak 12 months
for Lockheed, whose stock has plunged 54 percent in that
time.
The contract for the new Block 60 model F-16's is subject to
Congressional approval, but it is unlikely the contract will
be blocked. The Defense Department and Air Force have met no
sustained political opposition during at least six extensive
briefings they have conducted on Capitol Hill since 1998.
The contract will add to Lockheed's backlog of $49.9 billion
and increase this year's sales by $500 million to $600
million, said Byron Callan, a military analyst for Merrill
Lynch & Company.
The sales increase would accelerate once deliveries begin in
2003 and go through 2005, he said. Lockheed's aeronautics
unit, which makes the F-16 and F-22 fighters and C-130J
transport planes, accounted for $5.4 billion of the
company's $25.3 billion in total sales last year.
The contract could pave the way for other foreign sales of
the Block 60 aircraft -- an F-16 more sophisticated than
versions flown by the Air Force.
---
pcyhuang
huangcapital.com |
