Lockheed braces for program cuts, delays due to U.S. budget woes

http://www.reuters.com/article/2013/09/03/us-aerospace-defense-lockheed-idUSBRE9820TE20130903

Lockheed braces for program cuts, delays due to U.S. budget woes
By Andrea Shalal-Esa
WASHINGTON | Tue Sep 3, 2013 2:25pm EDT

(Reuters) - Lockheed Martin Corp (LMT.N) is bracing for cuts and delays next year in major weapons programs, including a new coastal warship it builds for the U.S. Navy, unless Congress acts to reverse mandatory reductions in U.S. military spending, a top company official said Tuesday.

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"All the programs are on the table to be discussed," Bennett said. "The programs that are performing will have a higher probability of proceeding forward."

Bennett said Navy and Pentagon officials had not notified Lockheed about possible cuts to the Littoral Combat Ship (LCS) program despite reports that officials could halt the program at 24 ships, instead of the 52 units now in the Navy's plan.

Lockheed and Australia's Austal Ltd (ASB.AX) are building two different models of the new smaller warships for the Navy.



unhappycamper comment: Sequestration has finally affected some low hanging fruit: the Littoral combat Ship.

The article below points out the DoD is considering buying only 24 ($12 billion dollars) of these target barges than the original 52 ($26 billion dollars).

http://www.navytimes.com/article/20130903/NEWS/309030005/Sources-Pentagon-backs-cutting-LCS-24-ships