Pentagon to Restructure Lockheed Satellite Deal

The Pentagon will restructure an $11-billion Lockheed Martin Corp. satellite program to warn of enemy missile attacks, tying future funding to the performance of two initial satellites already under contract, a defense official and an industry analyst said.

Officials had already decided to keep alive the Space Based Infrared System High program, for which Northrop Grumman Corp. of Century City is designing advanced infrared sensors, given the lack of backup plans.

Pentagon acquisitions chief Kenneth Krieg backed a restructuring plan for the troubled space program at a meeting this week, although he has not formally signed it, one defense official said.

Shares of Bethesda, Md.-based Lockheed Martin rose 54 cents to $62.92.