In a disclosure to the New York Stock Exchange, Lockheed Martin reported a loss of $225 million from a classified development program of the company's Aeronautics division. As a result, the company's stock dropped, but the company said the secret development will eventually lead to a production contract.
The classified development programs in Lockheed Martin's Aeronautics division have grown since the U.S. government decided to increase investment in R&D of next-generation weapon systems. The division, which is the largest division of the giant company, manufactures F-35 stealth fighters, among other systems. The secret departments of the company deal mainly with development of advanced weapon systems and fighter planes.
The company announced that it "experienced performance issues" in the classified program whose nature was not specified. Lockheed Martin's chief financial officer, Ken Possenriede, told Reuters that "this is going to cost more and take longer to build than we anticipated, and this is the development portion of this program, it'll then go into production".