We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Fighter Planes

Market value of US military contractor drops by €1.8bn after Trump tweet

The President-elect said he will cut “billions” in costs for military purchases.

trump Andrew Harnik AP / Press Association Images Andrew Harnik AP / Press Association Images / Press Association Images

SHARES OF US military contractor Lockheed Martin fell today, wiping out nearly $2 billion (about €1.8 billion) of the company’s market value, as President-elect Donald Trump tweeted that making F-35 fighter planes is too costly.

Trump said he will cut “billions” in costs for military purchases. Shares of other defence contractors, including Raytheon and Northrop Grumman, also tumbled today.

Trump didn’t mention any specific company in his tweet, but Maryland-based Lockheed makes the F-35 one-seat fighter aircraft and is a major US defence contractor.

The F-35 programme made up 20% of Lockheed’s total 2015 revenue of $46.1 billion (about €43 billion). And US government orders made up 78% of its revenue last year. The F-35 programme directly or indirectly supports more than 146,000 US jobs, according to the company’s website .

In a statement, Lockheed said that it has worked to lower the price of the F-35 by more than 60% and said it expects the aircraft to cost $85 million (about €80 million) in 2019 and 2020.

“We welcome the opportunity to address any questions the president-elect has about the programme,” Jeff Babione, general manager of the F-35 programme said, adding: “It’s an amazing programme.”

Last week, Boeing’s stock dropped when Trump tweeted that the cost of a new 747 plane was “out of control”.

Read: Clinton campaign presses for intelligence briefing on Russian hacking

Read: “As ignorant of diplomacy as a child” – China is not one bit impressed with Trump

Associated Foreign Press
Your Voice
Readers Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.