Lockheed Martin Corporation
) has entered into an agreement, worth $253 million, with the
Royal Saudi Air Force (RSAF) to provide assistance for the
latter's F-15SA pilot and maintenance training systems. Lockheed
Martin's Mission Systems and Training business will be
responsible for this contract.
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Per the contract, Lockheed Martin will offer a complete
ground-based training setup for Saudi Arabia's F-15SA
modernization program. Utilizing this technology, pilots will
engage in air-to-surface combats, air-to-air warfare, air combat
tricks and strategic intercepts with 360-degree full mission
trainers. The company will also offer avionics, egress and
desktop trainers for procedure training by pilots.
In addition, Lockheed Martin will provide virtual systems, which
will enable training without the actual aircraft. This offering
includes basic maintenance, armaments, landing gears and
arresting hooks, flight controls and jet fuel starter trainers.
The company will roll out the deliveries from its facilities at
Akron, Ohio, and Orlando, Fla. The deliveries are expected to be
complete by 2020.
Lockheed Martin has been associated with Saudi Arabian defense
establishments for long and even acted as an F-15 training
partner for more than three decades. In Feb 2013, Lockheed Martin
set up its Saudi Arabian headquarters in Riyadh to strengthen its
strategic alliance with the country.
Bethesda, Md.-based Lockheed Martin Corporation is a global
security and aerospace company that is principally engaged in the
research, design, development, manufacture, integration and
sustainment of advanced technology systems, products and
The U.S. Department of Defense is one of the major customers of
the company and therefore any cutbacks in the U.S. defense budget
could limit Lockheed Martin's future growth prospects. To manage
domestic order curtailments, most of the U.S. defense players are
now expanding their operations outside the U.S. particularly in
the Middle East.
In Jan 2013, Lockheed Martin's peer
General Dynamics Corporation
) received an order, worth $132.7 million, from the Kingdom of
Saudi Arabia for the procurement and production of 69 Saudi M1A2
(M1A2S) Abrams tanks.
Lockheed Martin Corporation currently has a Zacks Rank #2 (Buy).
Other stocks from the sector that are presently performing well
) with a Zacks Rank #1 (Strong Buy) and
The Boeing Company
) with a Zacks Rank #2 (Buy).