Lockheed Martin Corporation
) has received a five-year contract worth $13.5 million from the
Office of Naval Research to explore highly advanced autonomous
technologies aboard an unmanned vertical take-off and landing
Per the contract, Lockheed Martin with a team consisting of
industry, government, and academic partners will develop a
technology that will allow an unmanned vertical take-off and
landing aircraft to operate under supervisory control. The
technology is developed in such a way that at the high level, the
system will be controlled manually, while it will be operated
automatically at the low level.
Further, the technology will offer supplemental decision aids on
legacy manned platforms to the pilots and will have the potential
to improve the utility and effectiveness of current unmanned
vertical take-off and landing aircraft,
In the first one and half years of the five-year contract, the
industry team led by Lockheed Martin will demonstrate the
capabilities of its Open-Architecture Planning and Trajectory
Intelligence for Managing Unmanned Systems (OPTIMUS) architecture.
Apart from this contract, Lockheed is busy with other sizeable
contracts as well. Recently, in October, the company had received a
contract from the U.S. Government worth $1.85 billion for the up
gradation of 145 Block 20 F-16A/B aircraft for the Republic of
China ("RoC"). Prior to that, the company had received a $111
million Modernized Target Acquisition Designation Sight/Pilot Night
Vision Sensor (M-TADS/PNVS) Performance Based Logistics ("PBL")
contract from the U.S. Army.
Based in Bethesda, Maryland, Lockheed Martin is a global security
and aerospace company, engaged in the research, design,
development, manufacture, integration and sustainment of advanced
technology systems, products and services. Key growth drivers of
the company are its focus on debt repayment, its ongoing share
repurchase program and the incremental dividend.
A few days back, Lockheed Martin had made an announcement to
increase the quarterly dividend rate to $1.15 per share, up
approximately by 15 cents from the current payout of approximately
$1.00 per share. The proposed hike would bring the annual dividend
to $4.60, up 15% from the previous payout. The increased quarterly
dividend will be paid on December 28, 2012 to shareholders of
record at the close of business on December 3, 2012.
Going forward, we believe Lockheed Martin has significant upside
potential based on the Obama administration's focus on Intelligence
Surveillance Reconnaissance (ISR), unmanned systems, force
protection, cybersecurity, and missile defense. The company
presently retains a short-term Zacks #3 Rank (Hold). We have a
long-term Outperform recommendation on the stock.
Some of Lockheed Martin's main competitors are
The Boeing Company
General Dynamics Corporation
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