Week of 4/23/2020
COVID-19 F-35 Financial Impacts
This week, Lockheed Martin and Aeronautics reported strong financial results amidst a tough quarter for everyone. I want to discuss with you some of the financial impacts of COVID-19 on the F-35 program.
We have received notifications from all of our suppliers. A limited subset of the suppliers are identifying risk of potential impacts due to COVID-19. Areas of risk include transportation delays, travel restrictions, efficiency loss due to social distancing requirements, heavily commercial based aviation businesses, regional closures and staffing/attendance levels. As the pandemic continues to create uncertainty worldwide, our supply chain remains resilient and focused on supporting the customer’s mission. Due to these disruptions, we expect some impacts on production and for this reason Lockheed Martin reduced our total 2020 sales expectations slightly. We will have a better idea of the supply chain impacts in the coming weeks.
It is important to note that in this challenging environment the F-35 program brought in nearly $900 million in orders during the first quarter and we foresee little financial impacts on F-35 follow-on modernization and sustainment activities.
I want to emphasize that despite the 2020 sales reduction, the record F-35 program backlog and expansive Lockheed Martin portfolio positions us well to weather the COVID-19 pandemic.
Yesterday, I met with all F-35 Vice Presidents and Directors to discuss the program. We discussed where we are and the path ahead. I remain confident in our ability to Perform and maintain mission readiness for our customers.
Please continue to prioritize your health and safety. Your well-being remains my top priority. I know, we will come together to meet the challenges ahead. Please continue to take care of yourselves and each other and thank you for your dedication.
First Eielson F-35s Arrive Home
On Tuesday, the first two Eielson Air Force Base F-35As ferried from Fort Worth to Fairbanks, Alaska. The men and women of the 354th Fighter Wing will conduct operations with the F-35 for decades to come.
A third F-35 will arrive next month, with follow-on aircraft filling out two squadrons over the next year-and-a-half. Once complete, Eielson will fly and maintain 54 F-35s.
"Moving forward, we'll be charged with projecting airpower from the top of the globe. It's significant growth for the 354th Fighter Wing, and also for the Eielson community," said 354th Fighter Wing Commander Col. Ben Bishop.
The 354th Fighter Wing will conduct operations with F-22 fighters based at Joint Base Elmendorf-Richardson in Anchorage, making Alaska home to the most Operational 5th Generation fighters in the world. The F-35 and F-22 will safeguard the sky in the United States, Europe and many Indo-Pacific countries.
Great work to the Eielson and Lockheed Martin team and I'm excited for the F-35’s future in The Last Frontier.
Team Aero Responds To COVID-19 Crisis
During this global crisis, employees from across Lockheed Martin and the F-35 program are coming together to serve our local communities. Today, I’d like to touch on a few examples of how Aeronautics employees are giving back.
In Fort Worth and Palmdale, our teams are quickly building over 5,000 face shield frames using a high-pressure water jet as well as additive methods to deliver components for assembly into completed face shields to support local hospitals across the nation.
In Marietta, over 1,500 fabric masks were hand-cut and sewn. The team put these masks together just days after the Centers for Disease Control and Prevention announced their recommendation for people to wear masks.
I want to thank all the employees for their efforts to improve our communities. I am proud of your efforts to support the men and women on the front lines of COVID-19.
ICYMI: Socially Distant Airshow
Just because we must stay six feet apart does not mean we cannot enjoy a great airshow. This week LiveAirShowTV presented a two day Socially Distant Airshow.
The F-35A Demo Team took center stage. The team showed off the profile and cockpit footage. Also, our own Lockheed Martin F-35 test pilot, Billie Flynn, joined in to discuss his time flying the F-35 and his efforts involved in the F-35 Demonstration at the Paris Airshow.
F-35 Nation, that’s a wrap. Take care of yourselves and see you next week.