AEROSPACE & DEFENSE

Lockheed, Navy Settle Airplane Dispute: Under the settlement, the Navy dropped a 3-year-old claim that the Calabasas-based defense company defaulted on a contract to develop the P-7A anti-submarine aircraft, Lockheed said in a filing with the Securities and Exchange Commission. The Navy instead agreed to say the contract was killed because of “mutual agreement” by both sides. In turn, Lockheed agreed to return about $13 million of $124 million it received from the canceled program. Also, Lockheed said it will report a third-quarter gain of about $15 million from the settlement, because it will reverse part of a $300-million charge it took in late 1989 to cover the lost contract.