Textron Marine & Land Systems, an operating unit of
), has received a firm fixed-price contract worth $113.4 million
for the production of an additional 135 Mobile Strike Force
Vehicles ("MSFV") for the Afghan National Army ("ANA"). This
Foreign Military Sales ("FMS") contract has been awarded by the
U.S. Army Contracting Command, Warren, Michigan.
Per the contract, Textron will produce three armored vehicle
variants namely, MSFV with enclosed turret; MSFV with Objective
Gunner's Protection Kit; and an MSFV ambulance. The vehicle
deliveries are expected to be made through Feb 2014.
In May 2011, the company had received a contract for full-rate
production of 240 MSFVs along with associated support equipment,
spare parts, field service representatives, training and training
aids. Since then, the company has been fulfilling contract orders
for 499 vehicles. Out of this more than 300 vehicles have either
been delivered or are in operations with ANA battalions or are
being used as a part of a comprehensive in-country vehicle
logistics support and operator training program.
Mobile Strike Force Vehicles are a part of the TM&LS COMMANDO
Select line of armored vehicles and are derived from the
combat-proven M1117 Armored Security Vehicle ("ASV"). These
vehicles feature Enhanced Survivability ("ES") capability. The
ES-equipped vehicles also have a V-shaped hull design that is
available in ASV. The ES capability increases blast protection to
mine-resistant, ambush-protected (MRAP) levels. These vehicles
form the COMMANDO(TM) family of vehicles that are thoroughly
tested and proven and offer a range of supreme protection levels.
Textron Inc. is a global multi-industry company that manufactures
aircraft, automotive engine components, and industrial tools. It
is also a provider of solutions and services for aircraft,
fastening systems, and industrial products and components. The
company's products include commercial and military helicopters,
light- and mid-size business jets, plastic fuel tanks, automotive
trim products, golf carts and utility vehicles, turf-care
equipment, industrial pumps and gears, engineered fastening
systems and solutions, and other industrial products.
The diversified presence across commercial, manufacturing and
industrial products, as well as financing operations, insulates
the company from specific business risk. Also, its bottom line
should get a boost from the modest increase in jet deliveries,
higher revenue mix of business jets, growth in aftermarket sales,
increase in commercial helicopter, and sales growth at Systems.
However, we remain concerned about the lower backlog at Cessna,
rate of recovery of the business jet market, and defense spending
cutbacks. The company presently retains a short-term Zacks Rank
Other stocks to consider are
Tyco International Ltd.
Macquarie Infrastructure Company LLC
), all with a Zacks Rank #2 (Buy).
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