Lockheed Martin Corporation
(
LMT
) has received a contract from the National Science Foundation
("NSF") for operation and maintenance of the support infrastructure
for the United States Antarctic Program ("USAP"). The USAP programs
facilitate universities, research institutions and federal agencies
to carry out scientific research in the region. If all options are
exercised, the multi-year contract is worth $2 billion.
National Science Foundation is the care taker of the USAP.
Besides financing the program for research in Antarctica, NSF also
provides logistics and infrastructure needed by other federal
agencies for their research. The main goal of the USAP is to
understand the region and its dependency and responses to climate
and environment.
Antarctica's remoteness and extreme climate make it a unique and
natural laboratory. The USAP uses the region as a source for
fundamental research in every scientific discipline.
Per the contract, the company will work with the NSF to
implement a cost-effective, streamlined infrastructure for managing
work stations and medical facilities, research vessels,
construction projects and remote sites in and around Antarctica. It
will also provide modern technology to transport scientists, staff
and other infrastructure required to and from the Antarctic region.
Lockheed Martin's know-how and competence would be used to
facilitate research that is only possible or done best in this
harsh polar region.
Lockheed Martin is the largest U.S. defense contractor with a
platform-centric focus that guarantees a steady inflow of follow-on
orders from a leveraged presence in the Army, Air Force, Navy and
IT programs. Over the longer run, we expect the company to register
a stable performance driven by a leveraged presence in the Army,
Air Force, Navy and IT programs.
We also expect shareholder return to continue to be shored up by
the company's focus on debt repayment, its ongoing share repurchase
program and the incremental dividend. However, we fear for further
cutbacks in defense budgets. The company presently retains a
short-term Zacks #3 Rank (Hold) that corresponds with our long-term
Neutral recommendation on the stock.
Based in Bethesda, Maryland, Lockheed Martin is a global
security company that is principally engaged in the research,
design, development, manufacture, integration and sustainment of
advanced technology systems, products and services. The company
mainly competes with
Northrop Grumman Corporation
(
NOC
) and
Raytheon Company
(
RTN
).
LOCKHEED MARTIN (
LMT
): Free Stock Analysis Report
NORTHROP GRUMMN (
NOC
): Free Stock Analysis Report
RAYTHEON CO (
RTN
): Free Stock Analysis Report
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