Boeing and Lockheed Martin Secure Major Defense Contracts

Etihad Airways has ordered 10 Boeing 787-9 Dreamliners and two Boeing 777 Freighters, valued at $2.8 billion. Meanwhile, Lockheed Martin has inked a deal to build 30 F-35 fighter jets for the Pentagon, with a potential value of up to $4 billion. The contracts demonstrate the ongoing demand for military aircraft and defense systems, despite a shrinking defense budget. The deals are also set to boost shares of Boeing, Lockheed Martin, and potentially General Dynamics.

Key Takeaways:

Boeing has secured a $2.8 billion order from Etihad Airways for 10 Boeing 787-9 Dreamliners and two Boeing 777 Freighters.
Lockheed Martin has signed a deal to produce 30 F-35 fighter jets for the Pentagon, with a potential value of up to $4 billion.
The F-35 deal involves 21 aircraft for the Air Force, six for the Navy, and three for the Marine Corps.
A definitive contract for the F-35 deal will be finalized next year.
Lockheed Martin competes with Boeing and Northrop Grumman on defense department contracts.
General Dynamics' CEO, Jay Johnson, sees growing demand for the company's combat vehicles and warships, despite a shrinking defense budget.
The company also has opportunities to sell its Gulfstream business jets in China and other emerging markets.

Statistics:

Total value of the Boeing order from Etihad Airways: $2.8 billion
Potential value of the Lockheed Martin F-35 deal: up to $4 billion
Number of F-35 fighter jets to be built: 30
Breakdown of F-35 aircraft by branch:

+ Air Force: 21

+ Navy: 6

+ Marine Corps: 3

Estimated value of the Gulfstream business jets discussed by General Dynamics' CEO: unknown

Sources:

[MarketNewsVideo.com, via COMTEX, Dec 12, 2011]
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