Lockheed Martin Corporation
) has been awarded a contract worth $27.1 million by the U.S. Army
to ensure greater crew safety and to modernize the fleet of
Multiple Launch Rocket System ("MLRS") M270A1 mobile rocket
launchers. The contract constitutes the first phase of a three-year
Per the agreement, Lockheed will test, assemble and upgrade
seven prototype vehicles. In the first phase, the company will
replace the launcher's cab and the fire control panel. As a result,
the launcher cab's inner volume will expand by 40%. The addition of
energy-absorbing seats will offer added protection from mine blasts
and improvised explosive devices.
The shift to High Mobility Artillery Rocket System ("HIMARS")
launcher will improve survivability as a result of sufficient
armoring in the new cab. These upgrades will ensure that the
M270-series launcher remains effective and provides consistent
services while protecting crews from threats.
MLRS M270A1 is a movable, automatic system used to fire
surface-to-surface rockets and missiles from the M270A1 platform.
The three-man crew onboard the launcher is able to fire up to 12
MLRS rockets or 2 Army Tactical Missile System ("ATACMS") missiles
from the inside of the cab. Lockheed Martin is the key contractor
for M270A1 research and development along with its two partners BAE
Systems Land and Armaments LP.
HIMARS has been in service since 2005. It is a new addition to
the MLRS launcher group. HIMARS carries a single six-pack of
rockets or one ATACMS missile on the army's 5-ton trucks and can
launch all MLRS family of weapons. The HIMARS systems are
interchangeable with the existing MLRS M270A1 launcher.
Earlier in September 2011, Lockheed Martin delivered the 400th
HIMARS launcher to the U.S. Army. This launcher is in high demand
due to its combat proven technique, which provides the armed forces
with a reliable and mobile platform to launch rockets and
We view Lockheed Martin as a well-positioned organization with
its successful delivery of information technology management
services, infrastructure and applications to the U.S. Army and
several other international defense establishments.
As the world's largest standalone defense contractor, Lockheed
Martin has a strong contract pipeline. Lockheed Martin ended the
first quarter of 2012 with $76.6 billion of backlog. Of this
Aeronautics segment orders amounted to $28.2 billion while
Electronic Systems segment backlog was $24.3 billion.
The Space Systems segment orders were worth $15.4 billion and
Information Systems & Global Solutions backlog amounted to $8.7
billion. On this basis, we expect Lockheed Martin to report a
stable performance in the forthcoming quarters.
Lockheed Martin Corporation retains a Zacks #3 Rank, which
translates into a short-term Hold rating. The company competes with
Northrop Grumman Corporation
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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