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Stats: 340 members, 4,611 Topics. Date: January 22, 2018, 10:48 pm

Donald Trump Sends A Tweet, Company Instantly Loses $2bn

TodayNewsReview / General / Business / Donald Trump Sends A Tweet, Company Instantly Loses $2bn 249 Views

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Barely a week after taking shots at Boeing, Donald Trump took aim at another major aerospace defence company on Twitter, saying the cost of Lockheed Martin's F-35 fighter jet program was "out of control".

Shares in the US defense and space engineering group immediately plunged more than 2 per cent in pre-market trade, wiping $2bn off the value of the company, before recovering slightly.

Altough Lockheed's dip is temporary it is a reminder to investors to be on alert, and a cause for concern that a much-anticipated uptick in defense spending in 2017 may not be as lucrative to contractors as once hoped.

In a tweet posted to his account, Mr Trump criticised the cost overruns in the company┬┤s F-35 next-generation fighter jet development programme.

"The F-35 program and cost is out of control. Billions of dollars can and will be saved on military (and other) purchases after January 20th," Trump said.

A week before Mr Trump won the presidential election, the US Defense Department and Lockheed Martin concluded negotiations on their ninth contract for F-35 fighter jets after 14 months of negotiations on the deal of more than $6.1bn, the Pentagon said.

The F-35 Lightining II is a so-called 5th Generation fighter sporting advanced stealth capabilities which is meant to become the next leading-edge platform for the US Air Force, Navy and Marines, as well for the armed forces of nearly 10 US allies, including the UK, Netherlands and Australia.

Donald Trump's comments come just a week after he criticised Boeing over the potential cost of the next generation Air Force One, causing a similar but temporary plunge in Boeing's share price.


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