Lockheed Martin Corporation
) received a string of Department of Defense (DoD) contracts
totaling $64.4 million. The DoD handed out 15 individual
contracts of which Lockheed clinched 20%.
The biggest contract received by Lockheed was valued at $30.3
million for the modification of Mission Avionics Systems and
Common Cockpits for MH-60R Sikorsky Seahawk helicopters. This
contract was an extension of the previous firm-fixed-price
agreement between Danish military and Lockheed for the delivery
of nine Mission Avionics Systems and Common Cockpits under the
U.S. foreign military sales (FMS) program. The systems are
expected to be supplied by Apr 2018.
The company secured another international contract from the
Royal Saudi Air Force for the supply of 95 Sniper Advanced
Targeting Pods, 70 Infrared Search and Track (IRST) systems, 35
Compact Multiband Data Link systems, 75 IRST pylons and spare
parts. The contract is valued at $21.4 million and is anticipated
to be concluded in Dec 31, 2019.
The final contract worth $12.7 million was awarded by the U.S.
Air Force for retrofitting F-22 Raptor fighter jets. Per the
deal, Lockheed will supply 72 retrofit kits, other support
equipment as well as spares to modify the F-22's automatic back
up life support system.
This contract was awarded to Lockheed in response to the
complaints filed by F-22 pilots regarding breathing problems. The
modifications are expected to be completed by May 30, 2015.
Lockheed has received a number of contracts, big and small, in
the past few months. The most significant is the $320 million
contract for offering improved communications reliability,
survivability, and information capabilities to the Air Force's IT
communications center in Washington D.C.
Recent domestic contract wins by Lockheed have been mostly
low-priced given the threat of budget sequestration in the U.S.
However, this will be countered by more FMS contract wins owing
to rising security issues that will keep the company well
Lockheed's diversified operations focusing on ISR, unmanned
systems, force protection, cyber security, and missile defense
will further fetch orders in the upcoming quarters.
Presently, Lockheed carries a Zacks Rank #3 (Hold). Other
operators in the defense sector looking good are Zacks Ranked #2
Northrop Grumman Corp.
). Based in Bethesda, Md., Lockheed currently has a market
capitalization of $33.63 billion.
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