'Wholehearted' disagreement

In her first public comments since Pentagon acquisition executive Frank Kendall criticized industry consolidation, Marillyn Hewson said today she "wholeheartedly" disagrees with his assessment.

During a call with reporters last month, Kendall said the Pentagon is increasingly worried about industry consolidation, arguing it could result in higher prices and reduced innovation.

The Lockheed chief executive said during today's call with analysts that she has had "a lot of discussions with Frank Kendall and others about this policy statement that he put out and respectfully have told him that we disagree with that."

She said there's simply no evidence to support his claim that consolidation is bad for the industry.

"I wholeheartedly disagree that through consolidation . . . that that's going to impede our innovation," Hewson said Tuesday. "Really, we believe that you have to continue to look at how you can be most effective. It's not about the size of the company, it's about performance."

Hewson noted the "passion" in her voice as she spoke about the topic.

"We do not believe that consolidation will inhibit innovation in the industry," she concluded.

For more coverage of Lockheed's earnings call, click here.