Pratt says next F-35 engine deals will cut costs by 7-8 percent

Pratt & Whitney, a unit of United Technologies Corp, said its contracts with the Pentagon for the next two batches of engines for the Lockheed Martin Corp F-35 fighter jet will result in combined cost savings of 7 percent to 8 percent.

Bennett Croswell, president of Pratt's military engines division, told reporters the company had already more than halved the cost of its F-35 engine, and the savings from the next two contracts - for the seventh and eighth batches of engines - would come on top of that.

Croswell, speaking at the annual Air Force Association conference, said Pratt had essentially reached agreement with the Pentagon on the next low-rate production contracts, which will be worth over $1 billion.

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