Lockheed Martin Corp., the world’s largest defense company, may sell Egypt 24 additional F-16 jet fighters to replace aging aircraft in its fleet, Chief Executive Officer Robert Stevens said. "The case in Egypt is unfolding," Stevens said without disclosing the potential contract value. "As you fly these airplanes in operations, there is ordinary attrition that occurs," he said at a New York investment conference Thursday.
Egypt began flying the F-16 in 1982 after years of using military equipment supplied by the Soviet Union. Egypt received a total of 220 of Fort Worth-built Fighting Falcons through 2002.
An order for 24 jets would be worth about $1 billion excluding any support contract, said Peter Arment, an analyst with Broadpoint AmTech in Greenwich, Conn.
"The number of F-16s acquired on the international market remains very healthy and will keep production running into the middle of the next decade," Arment said. "The F-16 is a very mature production program. They have healthy margin performance on this program, so any additional orders allow Lockheed to continue to build momentum for higher earnings growth."
Stevens made the announcement before a scheduled four-day overseas trip by President Barack Obama next month that will include stops in Egypt, Saudi Arabia, France and Germany.
The F-16 is flown by 25 nations, and more than 4,400 of the aircraft have been delivered over the life of the program. More than 2,500 people work on the program in Fort Worth.
Source: David A-O