Lockheed - Germany f-35 purchase

[Scooterd]

Germany to purchase as many as 35 Lockheed Martin F-35 stealth fighter jets to replace its Tornado military aircraft fleet, the defense ministry told parliament. The Tornado is the only German jet capable of carrying U.S. nuclear bombs, stored in Germany, in case of a conflict, but the aircraft have been in use for more than 40 years.

Lockheed Martin shares have been trading near all-time highs, with defense company stocks rising across the board following Germany's announcement.

[crimsonghost747]

Yet another big win for the F-35 program.

As we have all heard by now, Germany is finally starting to throw money at it's defense budget again. Many areas need an upgrade there, but it's pretty clear that the air force wants to get rid of the Tornados.
The European FCAS (Future Combat Air System) program is facing issues, some sort of a disagreement as to which company gets to do what. While this project is still probably two decades away from full production, any hiccups here will certainly force the countries involved to consider alternatives.

Put all of that together, I expect Germany to grab some more F-35s at some point in the future.

[cemanuel]

(03-14-2022, 11:41 PM)crimsonghost747 Wrote: Yet another big win for the F-35 program.

As we have all heard by now, Germany is finally starting to throw money at it's defense budget again. Many areas need an upgrade there, but it's pretty clear that the air force wants to get rid of the Tornados.
The European FCAS (Future Combat Air System) program is facing issues, some sort of a disagreement as to which company gets to do what. While this project is still probably two decades away from full production, any hiccups here will certainly force the countries involved to consider alternatives.

Put all of that together, I expect Germany to grab some more F-35s at some point in the future.

https://www.bnnbloomberg.ca/pentagon-cut...-1.1738373

"Pentagon Cuts Its Request for Lockheed’s F-35s by 35%
Tony Capaccio, Bloomberg News



(Bloomberg) -- The Pentagon will request 61 F-35s in its next budget, 33 fewer of the stealth jets from Lockheed Martin Corp. than previously planned, according to people familiar with the spending blueprint.

The U.S. Defense Department had planned to fund 94 of the fighters in fiscal 2023, up from the 85 in this year’s budget, according to the most recent “Selected Acquisition Report” on its costliest program.

The proposed reduction for the F-35 may be the most controversial procurement item in a national security budget request that’s expected to top $770 billion for the year that begins Oct. 1."

[fenders53]

That cut coincidentally matches up with the Germany buy.

[crimsonghost747]

(03-16-2022, 08:59 AM)fenders53 Wrote: That cut coincidentally matches up with the Germany buy.

This was something I was thinking about too. 
I would assume that the production lines are probably running at full capacity all year round? Right?

In that case if the US takes less deliveries, that could just mean expedited delivery schedules for other customers. I do see this as a real possibility, the US greatly benefits if it's allies are stronger and less dependent on US help. Right now everyone is back to increasing defense budgets, and everyone wants to beef up their military fast. Product delivery times are a big part of decision making, and the companies who can deliver goods in 2023 instead of 2024 will be bagging in some major contracts. 

That being said, this is just one possible reason, and undoubtedly this is the best case scenario for LMT. It could very well be something completely different.

[fenders53]

(03-16-2022, 09:52 AM)crimsonghost747 Wrote:

(03-16-2022, 08:59 AM)fenders53 Wrote: That cut coincidentally matches up with the Germany buy.

This was something I was thinking about too. 
I would assume that the production lines are probably running at full capacity all year round? Right?

In that case if the US takes less deliveries, that could just mean expedited delivery schedules for other customers. I do see this as a real possibility, the US greatly benefits if it's allies are stronger and less dependent on US help. Right now everyone is back to increasing defense budgets, and everyone wants to beef up their military fast. Product delivery times are a big part of decision making, and the companies who can deliver goods in 2023 instead of 2024 will be bagging in some major contracts. 

That being said, this is just one possible reason, and undoubtedly this is the best case scenario for LMT. It could very well be something completely different.

I don't know for sure. It could be my current administration would like to free up some money for social spending pre-election.  Our defense budget is absolutely nutty vs Europe.

[mid range]

(03-16-2022, 10:38 AM)fenders53 Wrote:

(03-16-2022, 09:52 AM)crimsonghost747 Wrote:

(03-16-2022, 08:59 AM)fenders53 Wrote: That cut coincidentally matches up with the Germany buy.

This was something I was thinking about too. 
I would assume that the production lines are probably running at full capacity all year round? Right?

In that case if the US takes less deliveries, that could just mean expedited delivery schedules for other customers. I do see this as a real possibility, the US greatly benefits if it's allies are stronger and less dependent on US help. Right now everyone is back to increasing defense budgets, and everyone wants to beef up their military fast. Product delivery times are a big part of decision making, and the companies who can deliver goods in 2023 instead of 2024 will be bagging in some major contracts. 

That being said, this is just one possible reason, and undoubtedly this is the best case scenario for LMT. It could very well be something completely different.

I don't know for sure. It could be my current administration would like to free up some money for social spending pre-election.  Our defense budget is absolutely nutty vs Europe.

Free money (out of someone else's pocket) to social programs prior to an election? Nothing to lose for those in power. However, I have contacts among the recipients of social spending. They are having trouble buying groceries. Throw in gasoline prices for those with cars and I believe my administration is in for a real trouncing this fall. The poor and middle class saw this affect them long before Putin's war.

[fenders53]

(03-22-2022, 07:21 PM)mid range Wrote:

(03-16-2022, 10:38 AM)fenders53 Wrote:

(03-16-2022, 09:52 AM)crimsonghost747 Wrote:

(03-16-2022, 08:59 AM)fenders53 Wrote: That cut coincidentally matches up with the Germany buy.

This was something I was thinking about too. 
I would assume that the production lines are probably running at full capacity all year round? Right?

In that case if the US takes less deliveries, that could just mean expedited delivery schedules for other customers. I do see this as a real possibility, the US greatly benefits if it's allies are stronger and less dependent on US help. Right now everyone is back to increasing defense budgets, and everyone wants to beef up their military fast. Product delivery times are a big part of decision making, and the companies who can deliver goods in 2023 instead of 2024 will be bagging in some major contracts. 

That being said, this is just one possible reason, and undoubtedly this is the best case scenario for LMT. It could very well be something completely different.

I don't know for sure. It could be my current administration would like to free up some money for social spending pre-election.  Our defense budget is absolutely nutty vs Europe.

Free money (out of someone else's pocket) to social programs prior to an election? Nothing to lose for those in power. However, I have contacts among the recipients of social spending. They are having trouble buying groceries. Throw in gasoline prices for those with cars and I believe my administration is in for a real trouncing this fall. The poor and middle class saw this affect them long before Putin's war.

Absolutely Midrange.  We have lived through inflation and it is brutal.  The middle class has been shrinking for a long time.  If you aren't wealthy times are going to be especially tough for awhile. Real inflation exceeds that government massaged stat.