The Department of Defense (DoD) offered a string of contracts
yesterday out of which
) clinched two back-to-back contracts totaling $82.2 million.
Other major contract winners included
Lockheed Martin Corp.
Both the contracts were awarded to Textron's Bell Helicopter
operating division. Of the two, the highest was a modification
contract worth nearly $61.0 million for the procurement of 12 new
metal scout helicopter cabins and 12 additional part kits to
furnish the OH-58D Kiowa Warrior scout
The latest version of the Kiowa army reconnaissance
helicopters comes with a pack of cutting-edge technological
features like infrared jamming equipment, laser warning
detectors, radar warning receivers and everything from .50
caliber machine guns to Hydra rockets and Hellfire missiles.
The contracting activity is the U.S. Army Contracting Command
- Redstone Arsenal (Aviation) in Redstone Arsenal, AL. The
upgrade tasks related to the contract will be carried out mostly
at Amarillo, Texas while a minor part will take place in Hurst,
The second contract worth $21.2 million involves the supply of
rotary wing blades. The firm-fixed-price contract will be
performed in Texas and is expected to be concluded on Jan 30,
2017. The Defense Logistics Agency Aviation, Philadelphia, PA is
the contracting activity.
The 2013 U.S. defense budget lays emphasis on upgrading and
strengthening the country's existing defense capabilities. This
explains the slew of modernization contracts from the DoD lately.
Textron's efforts to upgrade its technological know-how have
helped it to secure considerable contracts.
Moreover, Textron can capitalize on the spiraling global
security issues in the Middle East, Africa and Asia by way of
foreign military sales contracts. Recently, Textron landed a
lofty order worth $641 million for the delivery of 1,300 cluster
bomb units to the U.S. Air Force of which a sizeable portion will
be sold to the Royal Saudi Air Force.
Defense players like Textron are relying on international
contracts to keep its revenue stream stable in the face of U.S.
budget austerity. At the moment, Textron carries a Zacks Rank #3
(Hold). Textron as of now has a market capitalization of $7.74
billion. A better-placed industry operator is Zacks Ranked #2
ITT CORP (ITT): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
TEXTRON INC (TXT): Free Stock Analysis Report
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