Northrop Grumman Corporation
) received an order from Wicklow, Ireland based Arklow Shipping
to upgrade container vessels with VisionMaster FT Electronic
Chart Display & Information Systems (ECDIS).
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Per the contract, Northrop Grumman's Sperry Marine business wing
will perform the work on 12 container vessels. VisionMaster FT
ECDIS will enable paperless navigation. The installation of
VisionMaster FT ECDIS is slated to complete by the end of next
year and will replace the existing NaviECDIS.
With the upgrades, these vessels will not only be able to meet
the International Maritime Organization's mandates for paperless
navigation, but will also be cost effective over the long term.
The 12 ships being upgraded are multipurpose vessels ranging in
capacity from 3,000 to 5,000 gross tonnage.
With worldwide headquarters in Charlottesville, VA, Sperry Marine
is a unit of Northrop Grumman's Electronic Systems division.
Sperry Marine provides smart navigation and ship control
solutions for the international marine industry with customer
service and support in numerous locations worldwide.
Overall, Northrop Grumman offers a strong program portfolio
positioned to take advantage of several initiatives to ensure
further alignment with its customers' need to increase
affordability and cost competitiveness.
Going forward, with these contracts in hand and its cash
deployment strategy, we expect the company to continue to
generate strong earnings like it did in the first quarter.
The company's backlog, which stood at approximately $39.4 billion
at the end of the first quarter of 2013, is expected to see
further upside in the near future through its strong focus areas
of cyber security, modernization of defense and homeland security
assets, intelligence, surveillance and reconnaissance systems,
advanced electronics and software development. Additionally, the
proposed 25% increase in Northrop's funding in the 2014 budget
would encourage future opportunities.
The company is the fourth largest U.S. defense contractor behind
The Boeing Company
Lockheed Martin Corp.
General Dynamics Corp.
) in terms of full year 2012 revenue. The company presently
retains a short-term Zacks Rank #3 (Hold).