Contracts Awarded to Start F-22 Production

Lockheed Martin Corp. and United Technologies Corp. have received contracts worth $1 billion to begin formal production of the F-22 fighter and its engines, the Pentagon said.

Lockheed received an $868- million contract to complete production of the first 10 of 295 stealth fighters. United Technologies' Pratt & Whitney military engine unit received a separate $226-million contract to produce 20 F119 engines and provide field support.

The contracts were expected and are in addition to $1 billion in incremental funding awarded the Lockheed Martin F-22 industry team since January to keep production lines and subcontractors in place until the Pentagon approved initial production.

That decision occurred Aug. 14 and cut the program to 295 from 333.

Lockheed shares fell $1.68 to $42.92, while United Technologies fell $1.42 to $47.65, both on the NYSE.