Lockheed Picks GE for Engine Contract

Lockheed Martin Corp. said it selected General Electric Co. to provide engines for an updated version of its Galaxy transport aircraft for the U.S. Air Force, a contract that could be valued at up to $2.6 billion. Lockheed expects to be awarded the engine upgrade work by the Air Force in the first quarter of 2001. General Electric beat out United Technologies Corp.’s Pratt & Whitney unit and Rolls-Royce for the contract, which calls for GE to supply 540 jet engines and spare parts over 10 years. Shares of Bethesda, Md.-based Lockheed closed up 44 cents at $28.81, while GE rose 50 cents to close at $53.38, both on the Big Board.

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