Rockwell Collins, Inc. ( COL ) won a $44.5
million foreign military sales (FMS) contract from the Department
of Defense (DoD). The firm-fixed price contract entails the task of
modernizing three of Boeing Company 's ( BA ) KC-135R aerial
refueling tankers for the French Air Force.
Rockwell Collins will install KC-135 Global Air Traffic
Management Block 40 Upgrade features for the aircrafts. The upgrade
job is expected to be concluded by Nov 10, 2015.
A more advanced version of the aerial refueling tanker called
the KC-46 is currently making an entry in the U.S. with KC-135R
expected to gradually phase out. The KC-135R Stratotanker model
refuels long-range bomber, fighter planes, and cargo aircraft
in-flight and has a maximum fuel load capacity of 200,000
The KC-135R model has the ability to operate as a cargo
transport and flies at an altitude of 50,000 feet. It is also
capable of carrying 83,000 pounds of cargo. With a steady increase
in order deliveries of Boeing's aircrafts, Rockwell's original
equipment manufacturer business has bounced back.
Given the current defense cutbacks in the U.S., the foreign
contracts will offer a stable revenue stream to the company.
Rockwell recently secured a modification contract for supporting
the Longbow Crew Trainer Virtual Geospecific Database Suites for
Saudi pilots operating Apache Longbow attack helicopters.
Moving forward, the company's constant efforts to bring in
cutting-edge technology applications in military and aerospace will
allow it to remain well positioned amidst the challenging defense
In addition, the reinstatement of the Federal Research and
Development Tax Credit will boost Rockwell's innovation
competencies. At present, Rockwell Collins maintains a Zacks Rank
However, other aerospace and defense stocks worth considering
are Zacks Ranked #2 (Buy) B/E Aerospace, Inc. ( BEAV ) and
Alliant Techsystems Inc. ( ATK ).
Headquartered in Cedar Rapids, Iowa, Rockwell Collins designs,
produces and supports communications and aviation electronics for
commercial and military customers worldwide.ALLIANT TECHSYS (ATK): Free Stock Analysis
ReportBOEING CO (BA): Free Stock Analysis ReportB/E AEROSPACE (BEAV): Free Stock Analysis
ReportROCKWELL COLLIN (COL): Free Stock Analysis
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