Monday, 26 December 2016

Lockheed Martin bends to Trump' prices demand

The CEO of Lockheed Martin Corp (NYSE:LMT. late last week promised President-elect Donald Trump that the defense contractor would, as he requested, cut the cost of the controversial F-35 fighter jet.

Marillyn Hewson said she had a "very good conversation" with Trump Friday, after he took to Twitter and messaged that he was mulling replacing the costly F-35 Joint Strike Fighter with a modified version of a cheaper jet, being priced by rival Boeing (NYSE:BA) Co.

She gave her "personal commitment" to cut the cost of the combat jet with stealth capacity.
"I've heard his message loud and clear about reducing the cost of the F-35," Hewson said in a statement, a copy of which was obtained by Investing.com. "I gave him my personal commitment to drive the cost down aggressively. We're ready to deliver."

The price of Lockheed stock took a beating on Thursday and Friday of last week after the tussle with the incoming president, famed in his business days as a negotiator for low-cost, high quality solutions from his vendors for the Trump Organization's building projects, like the Grand Hyatt and the Trump Tower in Manhattan.

American stock markets are on holiday today in honor of Christmas.

The Dow closed up on Friday at 19933.81, an increase of 14.93 points, or 0.07%.

The Nasdaq closed at 5462.69.

The S&P 500 closed at 2263.79, up 2.83 points, or 0.13%.
Lockheed's stock closed at $249.59 per share Friday on the New York Stock Exchange, down 1.27%, or $3.21.