Northrop, Lockheed Come Under Pentagon Fire for Quality Issues
Northrop Grumman (NYSE: NOC) and Lockheed Martin (NYSE: LMT), two of the nation's largest defense contractors, both were hit by the Pentagon over quality concerns in recent weeks. None of the individual incidents are a reason to sound an alarm about either company. But the pattern, if it continues, is worrisome and needs to be watched.
A Lockheed Martin F-35B secured aboard the USS Wasp. Image source: U.S. Navy via Flickr.
Early last week, Bloomberg reported that the Army in June had issued a delinquency notice against Northrop, citing "poor contract performance related to initial supply and quality concerns" on a $3 billion helicopter antimissile system. The report also said that the Air Force had discovered landing gear installation issues and other concerns with Northrop's contract to maintain Joint STARS air-to-ground surveillance aircraft.
Source: Fool.com
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