Lockheed Martin Corporation
) won a $73.7 million contract from the U.S. Hill Air Force Base
for providing support for the maintenance and repair of the F-22
fighter jets. The depot is currently being set up at Hill Air
force base in Ogden, Utah.
The program is expected to begin in the first quarter of 2013
and is projected to be wrapped up by year-end 2013. The deal is a
modification of the original $258.76 million contract awarded in
The aforementioned program is part of the U.S. Air Force's
recent focus on the sustainment of the F-22 raptors, given the
receding production levels of the concerned jets. The Air Force
has been busy handing out contracts to private defense operators
for delivering maintenance services to planes at the government
bases in the U.S.
Lockheed Martin is a member of the F-22 partnering activation
team and will support the establishment of the depots situated at
different Air Force bases. The company will also participate in
carrying out management and integration works of other defense
) was another defense entity that extended its technical
capabilities for the development of the Warner Robins Air
Logistics Center in Iowa. The facility was established to offer
maintenance services to F-22 Communications, Navigation and
Identification ("CNI") avionics.
We believe the probability of defense spending cuts will
hinder the company's future prospects. However, Lockheed Martin's
diversified operations in unmanned systems, force protection,
cyber-security and missile defense operations will help in
maintaining its growth momentum. Also, the significant backlog
orders of $75.6 billion will further the near-term top-line,
Lockheed Martin currently retains a Zacks Rank #3 (Hold).
Recently, the company clinched a $104 million contract to offer
technical support to the ground control systems of the Global
Positioning System groups.
General Dynamics Corporation
), a Zacks Ranked #3 player, is also gearing up its logistics and
support division. It has acquired a contract from the U.S. Navy
for the supply of maintenance, repair, alterations and testing
services to the nuclear submarine, USS Mississippi.
With a market capitalization of $30.07 billion, the Maryland
based aerospace and defense company, Lockheed Martin primarily
engages in research, design, development, manufacture,
integration, and sustainment of advanced technology systems and
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