“Going forward we will return to our prior approach of assessing our repurchases from time to time in the context of our capital deployment strategy which has not changed”, Bush said during the call.
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“The LRS-B is critical to national defense and is a top priority for the Air Force”, said James. Elaborating on the selection process, James emphasized that it was conducted “with a high level of transparency with our industrial partners… we believe our decision represents the best value for our nation”.
Defense stocks were broadly ahead of the wider market Wednesday in the wake of upbeat earnings, a potential Pentagon budget deal and the bomber award, with only Boeing and Lockheed and Boeing losing ground. At a cost of more than two billion dollars each, the US Air Force has finally bought only 21 units of the 132 originally planned.
Engineering and development costs are estimated at $21.4 billion (in 2010 dollars) over the entire life of the program.
LaPlante told reporters last week the new bomber would have a few components that were already in use in secret programs, which would help reduce the risk of technology problems later on and keep the program on track. The contract eventually could be worth $80 billion and provide 100 planes total.
Northrop Grumman has just been awarded by Pentagon to build Air Force’s Long Range Strike Bomber which is set to enter service in the 2020s.
The US Air Force has chosen Northrop Grumman to build America’s next stealth bomber in a landmark decision announced at the Pentagon today.
Overall, the company posted a profit of $516 million, or $2.75 a share, up from $473 million, or $2.26 a share, a year earlier.
Revenue slipped to $5.979 billion from $5.984 billion.
Fresh off its victory, Northrop launched a Website for the program that was part infomercial, part campaign flier, urging people to “support America’s new bomber”. Photo courtesy of U.S. Air Force.
Based on current LRS-B independent cost estimates, the Air Force projects the APUC for the program will be approximately a third of the previous B-2 stealth aircraft.
Bloomberg adds that the two companies created the designs honed at Lockheed’s Skunk Works division with Boeing’s expertise in composites manufacturing. The fighter program is expected to cost more than $1 trillion over its lifetime.
“Mid-2020s is our estimate right now for initial operational capability”, Bunch said. The other bomber being supplanted is the famed B-52, a few of which were built more than 50 years ago.
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“It’s a full-up aircraft that we received”, Bunch said. “We are primed to deliver this capability in the most affordable, efficient way possible”.
