Lockheed Martin Corporation
) has been awarded a firm, fixed-price contract worth $65 million
by the U.S. Army and U.S. Marine Corps. It is an ongoing contract
with a 27-month performance period for developing the Joint Light
Tactical Vehicle ("JLTV") via the Engineering and Manufacturing
Development ("EMD") stage.
Per the agreement, Lockheed Martin will provide 22 vehicles within
a period of 12 to 14 months. This transaction deals with supply of
companion trailers, which includes a two-seat prime mover with an
open bed, the utility carrier and shelter ("JLTV-UTL"), and a
four-seater general-purpose vehicle, which can take ammunition,
troops and other important supplies.
Lockheed Martin set up the JLTV team in 2005 with other industry
leaders, namely BAE Systems plc ("BA.L"),
Allison Transmission Holdings Inc.
L-3 Communications Holdings Inc.
) L3 Combat Propulsion Systems unit and many others. The principal
objective of JLTV is to offer a family of vehicles ("FOV") with
companion trailers, which are competent to execute several mission
tasks related to defended, continued and networked mobility for
personnel and ammunitions in a full range of military action.
Lockheed Martin's JLTV EMD vehicles are improvised as well as
affordable versions compared to earlier models. This new EMD
vehicles cost and weigh less than the existing vehicles. This
vehicle provides higher fuel efficiency and blast-protection
standards, and less logistical support costs.
Lockheed Martin ended second-quarter 2012 with a backlog of $75.5
billion. After the announcement, the company received several
significant contracts from U.S. defense establishments,
particularly a follow-on contract worth $353.2 million from the
U.S. Army to produce Guided Multiple Launch Rocket System ("GMLRS")
Unitary rockets and another contract from the Army with a
transaction value of $150 million to supply a Terminal High
Altitude Area Defense ("THAAD") Weapon System.
During the second-quarter 2012 earnings call, Lockheed Martin
reaffirmed its full-year 2012 revenues between $45 billion and $46
billion. However, the company raised its earnings per share from
continuing operations to between $7.90 and $8.10, compared with its
earlier projected range of $7.70 to $7.90.
As per the Zacks Consensus Estimates, Lockheed Martin's earnings
for the third-quarter and full-year 2012 are currently pegged at
$1.85 per share and $8.10 per share, respectively.
We view Lockheed Martin as a well-positioned organization with its
successful delivery of ground vehicles, aircrafts, radars, missiles
& guided weapons, information technology management services,
infrastructure and applications to the U.S. & several other
international defense forces. As one of the largest standalone
defense contractors in the world, Lockheed Martin has a strong
However, the ongoing trend of delays in government programs along
with program cancelations will dent Lockheed Martin's forthcoming
Lockheed Martin Corporation currently retains a Zacks #2 Rank,
which translates into a short-term Buy rating.
Bethesda, Maryland-based Lockheed Martin Corporation is a global
security and aerospace company that is principally engaged in the
research, design, development, manufacture, integration and
maintenance of advanced technology systems, products and
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