Lockheed says costly for Pentagon if it cancels MH-60 helicopters

Lockheed Martin Corp warned on Tuesday that the U.S. Navy's plan to cancel an order for 29 MH-60 helicopters built by Lockheed and Sikorsky Aircraft would result in large termination fees because they are part of five-year agreements signed in 2012.

Lockheed Chief Financial Officer Bruce Tanner told reporters that work had already begun on cockpits and other equipment for the helicopters, which were to be ordered in fiscal year 2016, and a better option might be to finish building the aircraft and then sell them to allies.

"That would probably be a better deal for the taxpayer than paying close to 100 percent and not getting anything for it," he said. "The cost to terminate partially built helicopters is pretty significant relative to the cost to actually finish those helicopters."

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