Lockheed's Goofs Lead to Boeing's Profit

To hear Lockheed Martin (NYSE: LMT  ) CEO Marillyn Hewson tell it, everything's going just swell with Lockheed's new F-35 stealth fighter jet program. International buyers are "lining up" to buy the plane.

Singapore and Korea are both interested. Canada's in. Australia wants to buy 100 of the planes... but the truth is a bit more complicated than that.

Listen in, as Fool.com contributor Rich Smith explains how delays in the biggest weapons program Lockheed's ever been involved with are creating a sales opportunity for Boeing (NYSE: BA  ) .

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Read/Post Comments (5) | Recommend This Article (2)

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  • Report this Comment On May 20, 2013, at 3:49 PM, Itsjustmeagain wrote:

    The insatiabe need to buy something new is out of control. The USAF is risk adverse and now believes that every pilot must comes home regardless of the cost is indefensable. All other services put their people in harms way with managable risk, relying on training and not "low observability" which I hear is the new term for radar invisability.

    The USAF has just cut its production of the F-22 to maybe 70% of initial plans. Why would we expect the F-35 to be any better? Right now it is more than 70% over budget and several years behind schedule.

    The F-35 is a one size fits all that historicaly doesn't work. Everyone makes compromises and no one is satisified. Remember the F-111, a plane that could do it all to include carrier landings. If I recall, only the USAF received and kept them.

  • Report this Comment On May 20, 2013, at 4:01 PM, gjsuhr wrote:

    The F-35 reminds me of the goose I saw walking across our parking lot this morning. The goose is pretty awkward on land, swims OK...but not compared to a fish, dolphin, otter, etc., and it flies pretty well but is nowhere near as nimble in the air as a sparrow or as fast as a hawk. It's a compromise, and in trying to do many things it doesn't excel at any.

    Of course, the goose isn't way over budget and it's fully developed so it doesn't really bother me. The F-35 on the other hand, strikes me as a huge waste of money by a government that is nearly $17 trillion in debt.

  • Report this Comment On May 20, 2013, at 4:38 PM, coler1 wrote:

    Rich, I heard just short of “Sell your Lockheed stock and buy Boeing stock”. You are acting like a Boeing employee. The 12 E/A 18 Prowlers that Australia is going to buy are “PLUS” the 100 F-35 Lightning II’s not “Instead” like you are trying to get your audience to believe, stick to the facts. Boeing and Lockheed Martin have their issues, it’s just technologies, it is growing faster than we can contain it. It seems like for every time we jump one fold in technology, murphy throws in two or three fold unforeseen circumstances (including cost). Now Boeing has a small part in the Raptor with Lockheed and the F-18’s and F-15’s are good platforms, but they will not match the air superiority of the Raptor and the Lightning II once they get murphy out of the mix.

  • Report this Comment On May 20, 2013, at 10:14 PM, kfeltenberger wrote:

    Canada isn't "looking" to buy the F-35, they're a partner in the plane's production and are committed to buy it. As for Australia, the new EA-18s are over and above the F-35 purchase.

  • Report this Comment On May 20, 2013, at 10:22 PM, birder1500 wrote:

    F35 is just another defense budget buster. Defense is completely out of control. Every senator votes for these contracts because it means money flowing into their states. This country is a Fing disaster.

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