A joint venture between
Lockheed Martin Corp.
Northrop Grumman Corp.
), The LONGBOW Limited Liability Company has received a $90.0
million international contract for the supply of Fire Control
Radars ("FCRs"). Per the contract, the joint venture will deliver
these Radars to Saudi Arabia for their AH-64 Apache Attack
Moreover, the terms of the contract includes delivery of LONGBOW
FCRs for the Saudi Arabia National Guard, LONGBOW Mast Mounted
Assemblies for the U.S. Army and AH-64E LONGBOW FCRs, supply of
additional parts and maintenance for the Royal Saudi Land Forces
The Radar Units offer high processing power, which contributes to
substantial growth by reducing mass and the cost of maintenance.
The units also provide automated engagements at multiple targets,
irrespective of the weather, the terrain or any obscurant in the
LONGBOW has been providing Apache aircrew with services like
target detection, location, classification and prioritization
Northrop Grumman has a strong presence in Air Force, Space &
Cyber Security programs. Northrop's product line is well
positioned in high priority categories, such as defense
electronics, unmanned aircraft and missile defense. Revenue and
earnings growth continue to be driven by its strong presence in
the current focus areas of cyber security, modernization of
defense and homeland security assets, intelligence, surveillance
and reconnaissance ("ISR") systems, advanced electronics and
Meanwhile, Lockheed Martin has significant upside potential based
on the Obama administration's focus on ISR, unmanned systems,
force protection, cyber security, and missile defense.
However, the adverse effects of sequestration cannot be ignored.
In fact, in April, the budget cuts from sequestration have
reduced the number of contracts awarded by the Department of
Defense by 52% from Mar 2013 level.
Even, defense majors like
The Boeing Company
Huntington Ingalls Industries Inc.
) are part of this $37 billion sequestration cut made due to the
automatic spending reduction that took effect from Mar 1, 2013.In
Feb 2013, the government had announced $1.2 trillion in automatic
cuts by 2021.In Feb 2013, the government had announced $1.2
trillion in automatic cuts by 2021.
Lockheed Martin presently retains a short-term Zacks Rank #3
(Hold) while Northrop Grumman carries a short-term Zacks Rank #2
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