As Lockheed Martin works to replace Turkish suppliers on the F-35 program, the company's associated risk is covered by the U.S. government, according to the contractor's chief executive.
In a call with analysts this morning, Marillyn Hewson said Lockheed continues to work closely with the U.S. government to establish alternate suppliers. Earlier this year, the Pentagon announced Turkey's explusion from the program.
Hewson said today Lockheed, as the prime contractor, is tasked with finding new suppliers.
"Do we have the responsibility? We do," she said. "We are the agent reassigning the work, and we've been working on it for some time. But in terms of the risk associated with that, we have a contract modification from the U.S. government that covers all that risk."
Meanwhile, Lockheed Martin said today sales in its most recent quarter reached $15.2 billion, up 6% from the same three-month period a year earlier. The contractor recorded quarterly profit of $1.6 billion, up 9% from the prior year.
Lockheed said quarterly sales grew in all of its business units, except its rotary and mission systems business. The company attributed the decline at RMS to lower sales of Sikorsky helicopter programs.