F-35, because Leonardo toasts in Finland with Lockheed Martin
The Helsinki government has signed an agreement worth $ 9.4 billion for the purchase of F-35 fighters, made by the American Lockheed Martin. Leonardo takes care of the production of the wings of the F-35A.
Finland has signed a $ 9.4 billion deal to purchase US F-35 fighters.
Last December the Helsinki government announced it would replace its old F / A-18 fighter jets with 64 F-35 aircraft and weapon systems.
Finland is the 14th country to opt for the F-35. The last was Switzerland. This summer, the Swiss Defense announced that it had selected Lockheed Martin's F-35A Lightning II as the next generation fighter.
And Germany would also be getting closer to buying the US stealth fighter jet.
This is good news for Lockheed Martin, the program's prime contractor. But also for the Italian Leonardo who builds the wings of the F-35 A. "For Bestinver Securities the news is positive for Leonardo as it gives greater visibility to the military programs of the aircraft division" reports MF .
THE INITIALS OF THE CONTRACT
Helsinki will acquire 64 aircraft from manufacturer Lockheed Martin, with plans to deploy them starting in 2027.
“Defense Minister Antti Kaikkonen signed an industrial cooperation agreement in Helsinki. The agreement was signed with fighter aircraft manufacturer Lockheed Martin and engine manufacturer Pratt & Whitney, part of the Raytheon Technologies group, ”the ministry said in a statement.
WHAT IT PROVIDES
The supply contracts provide for the delivery of 64 multi-role fighters in the F-35A Block 4 configuration in 2025-30, engines for maintenance machinery and equipment, plants, spare parts, replacement equipment, training equipment and services necessary for the operation and maintenance. The agreements also include training of defense forces flight and aviation personnel, the ministry added.
THE GEOPOLITICAL SCENARIO
The government of Helsinki has announced the acquisition program without reference to the crisis between the West and Russia regarding Ukraine. As Reuters points out , Finland currently has no plans to join NATO, the foreign minister said in January. However, Finland is purchasing NATO-compatible military equipment, which will allow for greater cooperation.
POSITIVE NEWS FOR LEONARDO ALSO
“For Bestinver Securities, the news is positive for Leonardo as it gives greater visibility to the military programs of the aircraft division. The F-35 is Lockheed Martin's flagship model fighter and accounts for approximately 30% of the company's sales. Leonardo is responsible for the production of the wings of the F-35A and the final assembly of the aircraft ordered by Italy and the Netherlands ”reports MF.
Furthermore, the broker recalled that in the first nine months of 2021 the group led by Alessandro Profumo confirmed the good performance of the aircraft division (orders: + 112.8% compared to 2020, revenues: + 24.5%, ebita +18 , 1% with a Ros of 11.4%). In the same period, as regards production, Leonardo delivered 32 wings to Lockheed Martin against 27 in the first nine months of 2020. Bestinver therefore confirmed the buy rating and the target price of between 7 and 8 euros on the Leonardo stock.
IN THE TRAIL OF THE RUMORS ON THE POSSIBLE GERMAN ORDER
Finally, Berlin would also be keen to buy F-35s.
In January, press reports reported that Germany is once again considering the F-35 as a potential replacement for its old Tornado fleet. And last week, multiple sources told Reuters that, after being scrapped in 2019, the F-35 option would be "back on the table."
To date it is not clear how many F-35 jets Germany could buy, in any case, if the news were confirmed, it would be equally positive for Leonardo. “We believe the division's momentum is confirmed”, concluded Bestinver, recalling that the military and government business represents approximately 82% of Leonardo's revenues.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/f-35-perche-leonardo-brinda-in-finlandia-con-lockheed-martin/ on Fri, 11 Feb 2022 14:54:09 +0000.