Lockheed Martin leaders told Wall Street analysts Jan. 24 that they expect additional orders for F-22 Raptors to become more institutionalized within the Pentagon's budget requests as aging-fleet issues appear to be only increasing in the U.S. Air Force.

Bob Stevens, Lockheed chairman, president and CEO, pointed to recent groundings of Boeing F-15 aircraft and noted that the pace of foreign counterinsurgency and other military operations looks to remain high -- thus speeding up wear and tear on decades-old fighters.

To close down the Raptor production line as is planned now -- especially after it has achieved better cost efficiencies -- does not seem the best decision for U.S. officials, he maintained.

Indeed, the Pentagon's No. 2 official wants to use new supplemental Defense Department funds this fiscal year to buy more F-22s to replace aircraft lost during current military conflicts (DAILY, Jan. 18). And Air Force leadership were actively calling for up to the 381 Raptors the service has listed as a requirement even before the F-15 groundings occurred, despite the fact that Deputy Defense Secretary Gordon England has limited planned orders to 183 (DAILY, Oct. 25, 2007).

Still, even the supposed increase of Raptor orders this year would stem from a one-time maneuver through supplemental budget requests, which are increasingly seen as an endangered species in Washington.

Analyst Steve Binder of Bear Stearns asked Lockheed's Stevens about the prospects of additional Raptor orders from regular legislation and keeping the line alive past 2011 during the company's annual conference call over year-end financial results.

"This prospect is looking more and more likely than less likely," Stevens responded.

The fourth quarter and full-year 2007 earnings results that companies are rolling out this week illustrate the degree to which military contractors are being buffeted in the sputtering U.S. economy.

Lockheed Martin reported flat sales in the fourth quarter, but its net income was up 20 percent. Net income also rose 20 percent for the full year despite a more modest 6 percent gain in sales.