July 21, 1990 |
The Navy announced Friday that it has canceled a $600-million Lockheed Corp. contract to develop the P-7A anti-submarine patrol aircraft, declaring that the firm had "failed to make adequate progress" toward completing the program. The unusual punitive action poses major financial risks for the Calabasas aerospace firm, which was the prime contractor in the troubled program that would have been worth up to $5 billion for 125 aircraft.
May 26, 1990
Thank you, Conrad, for your touching memorials to Sammy Davis (May 18) and Jim Henson (May 20). I think they speak for many. HELEN CAREY Desert Hot Springs
April 12, 1990 |
Lockheed is asking the Navy to release it from provisions of its contract for the P-7A patrol aircraft that could result in multibillion-dollar losses during production, it was learned Wednesday. The Calabasas-based aerospace firm has been in negotiations with the Navy for the past several weeks, seeking to "restructure" its January, 1989, contract for the aircraft, company officials said.
November 21, 1989 |
Lockheed was sued Monday by a Pennsylvania corporation that claims to have lost money on the aerospace firm's stock because it failed to disclose cost overruns on its Navy P-7A program sooner. The class-action suit was filed by Peter Stuyvesant Ltd., which claims that it purchased 200 shares of Calabasas-based Lockheed on Sept. 20 for $48.50 per share. The suit also names as defendants a number of Lockheed executives and directors. Lockheed shares lost $3.625 on Monday and closed at $35.
November 18, 1989 |
Lockheed Corp. disclosed Friday that it will incur a massive $300-million cost overrun on development of the Navy P-7A submarine patrol aircraft and will charge the costs against profits in the fourth quarter. The writeoff represents a 50% overrun, accumulated in only one year, on Lockheed's $600-million fixed-price contract to design and develop the P-7A. Ultimately, production of 125 of the aircraft is expected to cost $4 billion to $5 billion.