Shares of U.S. aerospace giant Lockheed Martin (LMT) fell Monday after President-elect Donald Trump tweeted criticism of defense spending for the Maryland-based firm's F-35 stealth jets.
The stock was down nearly 4% at $249.25 a share in mid-morning trading.
The drop came as Trump used Twitter, one of his favored social media platforms, to characterize the cost of the jet development program for the U.S. Department of Defense as "out of control."
"Billions of dollars can and will be saved on military (and other) purchases after January 20th," tweeted Trump.
The F-35 program and cost is out of control. Billions of dollars can and will be saved on military (and other) purchases after January 20th.
— Donald J. Trump (@realDonaldTrump) December 12, 2016
Lockheed Martin said it was preparing a response to the criticism.
Lockheed Martin's F-35 Lightning II is a 5th generation jet that the company says combines advanced stealth with fighter speed and agility. Three variations of the F-35 are scheduled to replace older jet fighters used by the U.S. Air Force, Navy and Marine Corps, as well as the defense agencies of 10 other countries, the company says.
Total costs for the F-35 program, including research, development, and construction, had reached nearly $340 billion as of Dec. 2014, according to a Government Accountability Office report issued in March. The cost represented a 48.3% increase since Oct. 2001, the report said. Lockeed Martin had delivered 154 of the jets as of Dec. 2015, the report added.
"Since the start of production, the contractor's production processes have continued to mature, and program officials stated that they are now at a manufacturing readiness level that indicates they are in control, the GAO report said.
Trump's comments mark the second time he has taken personal aim at defense industry spending. On Dec. 6, he similarly used Twitter to criticize Boeing, another U.S. aerospace giant, over the projected cost of providing the next-generation jets that will serve as Air Force One for U.S. presidents.
The New York businessman, who's scheduled to take the presidential oath of office in January, said costs for the Boeing aircraft had risen past $4 billion, but provided no documentation for the estimate. He called for canceling the Boeing deal in a tweet that came shortly after the Chicago Tribune's online posting of a news story in which Boeing CEO Dennis Muilenburg urged Trump to ease back from anti-trade comments
Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!
— Donald J. Trump (@realDonaldTrump) December 6, 2016
The same GAO report separately estimated in March that the full Boeing program would cost about $3.2 billion from federal fiscal years 2010 through 2020, including $2 billion for research and development. The military has not yet awarded a contract to assemble the jets, which are to be equipped with specialized electronic and other equipment to protect U.S. presidents and enable them to maintain communications under all conditions.
"We are currently under contract for $170 million to help determine the capabilities of these complex military aircraft that serve the unique requirements of the President of the United States," Boeing said last week in a statement responding to Trump's criticism. "We look forward to working with the U.S. Air Force on subsequent phases of the program allowing us to deliver the best planes for the President at the best value for the American taxpayer."
Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc
