Shares of Lockheed Martin fell as President-elect Donald Trump tweeted that making F-35 fighter planes is too costly and that he will cut “billions” in costs for military purchases.
Lockheed makes the F-35 one-seat fighter aircraft for the U.S. and is a major defense contractor. The F-35 program made up 20 percent of Lockheed’s total revenue last year.
This is the second time in a week that Trump has blasted U.S. aircraft spending. Last week, Trump tweeted that costs to build new presidential planes by Boeing Corp. were “out of control” and ended the tweet with “Cancel order!”
Representatives from Lockheed, based in Bethesda, Maryland, did not immediately have a comment.
Lockheed Martin Corp. shares fell 4.1 percent to $248.86 in morning stock trading Monday.
(AP)
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3 Responses
If Trump, the “classic” Crony Capitalist, and recipient of Corporate Welfare, decided as president to get rid of crony capitalism and corporate welfare – it will be highly unusual and quite disruptive.
Note the Chester Arthur, elected as the representative of the “spoils system” ended up supporting the establishment of civil service, and Joseph Kennedy (father of the future president, and a notorious securities trader) was made the first head of the Securities Exchange Commission on the theory that it takes a fox to catch a fox.
Trump may prove to be very foxy.
And this helps the economy how?
By making the same exact planes cheaper and routing billions of dollars to other profitable things.