Lockheed Martin Corporation
) was provided funding in the amount of $696,629,123 for
construction of two Littoral Combat Ships. The Naval Sea Systems
Command, Washington, D.C., is the contracting authority.
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A littoral combat ship is a type of relatively small surface
vessel intended for operations in the littoral zone. They are
well designed to tackle rapidly changing global threats and
provide a cost-effective solution in the current era of tight
Work on the contract will mainly be performed in Marinette,
Wisconsin (56%); Walpole, Massachusetts (14%); Washington, D.C.
(12%); Oldsmar, Florida (4%); Beloit, Wisconsin (3%); Moorestown,
New Jersey (2%); and Minneapolis, Minnesota (2%). The company
expects to finish work on the contract by Jul 2018.
Lockheed Martin is the largest U.S. defense contractor with a
platform-centric focus and a steady inflow of follow-on orders
due to its leveraged presence in the Army, Air Force, Navy and IT
programs. However, the ongoing trend of governmental delays in
program decisions and even program cancellations have affected
the fortunes of the defense industry in general and Lockheed
Martin in particular.
Lockheed Martin finished 2012 with $82.3 billion of order
backlog, including $19.8 billion of new orders booked in the
fourth quarter. Of this $30.1 billion belonged to the Aeronautics
segment and $18.1 billion to the Space Systems segment. The rest
is made up of $14.7 billion for the Missiles and Fire Control
segment; $10.7 billion for Mission Systems and Training; and $8.7
billion for the Information Systems & Global Solutions.
Lockheed Martin is a Zacks Rank #2 (Buy) stock. The past 60 days
have seen 12 of the 13 earnings estimates for full year 2013
moving up despite an industry-wide threat of budget cutbacks and
effects of sequestration.
In the aerospace and defense industry we presently prefer the
Zacks Rank #1 (Strong Buy) stock,
European Aeronautic Defence and Space Company
). Other than Lockheed Martin, Zacks Rank #2 (Buy) stocks in the
defense space include
The Boeing Company
FLIR Systems, Inc.