Northrop Grumman Corporation
) airport systems business in Europe clinched a contract for the
supply of Passenger Flow modules to U.K. based East Midlands
Airport Group for an undisclosed amount. The contract will come
into effect immediately.
The Passenger Flow modules is a part of the company's flagship
Airport Realtime Collaboration ("ARC") program. The company's
airport systems support business offers software products and
services for helping achieve efficiency in airport operations
worldwide and is located in Peterborough, U.K.
As per the agreement, Northrop will cater to the passenger
software needs of East Midlands Group, a division of the
Manchester Airports Group and also provide full support services.
The software forecasts passenger counts, flow rates and queue
times and is expected to identify optimum staff rosters. In
addition to this, the tool gives out real-time estimates of
The Passenger Flow module enhances the Airport Collaborative
Decision Making ("A-CDM") ability and aids airport operations to
accomplish increased airside capacity, flexibility and
The company's Europe aircraft system group recently delivered
the world's first integrated nationwide Internet Protocol
(IP)-based VHF solution to Uruguay which offers voice
communications to all aircrafts operating in the country.
Northrop Grumman has been lately receiving systems support
contracts in its diversified operations. These include a $33
million contract for the delivery of multimode maritime radar
systems to the U.S. Navy and a $14.1 million contract to support
system development and demonstration phase for the Joint Counter
Radio-Controlled Improvised Explosive Device ("RCIED") Electronic
Warfare ("JCREW") 3.3 System.
Northrop's strength lies in its lofty backlog of orders which
in full year 2012 stands at $40.8 billion. Moreover, its cyber
security offering, constant upgrading of defense and homeland
security assets, intelligence, surveillance and reconnaissance
systems, advanced electronics and software development businesses
are expected to be the major top-line churners, going
However, the imminent threat of defense budget cuts by the
government, cost overruns and gradual withdrawal of troops from
Afghanistan and Iraq are headwinds that will undermine growth.
Currently, the company carries a Zacks Rank #3 (Hold).
We presently prefer the Zacks Rank #1 (Strong Buy) stocks,
Huntington Ingalls Industries
European Aeronautic Defence and Space Company
), as well as the Zacks Rank #2 (Buy) stock
Lockheed Martin Corporation
Headquartered in Falls Church, VA, Northrop Grumman offers
products, services, and solutions in aerospace, electronics,
information systems, and technical services worldwide.
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