Textron Marine & Land Systems (TM&LS), an operating unit
of Textron Inc. ( TXT ), has received a
contract worth $5.5 million to provide 12 armored turrets,
technical support services, vehicle repairs and spare parts from
the U.S. Army Tank-Automotive and Armaments Command ("TACOM").
These equipment and services will be employed in the Colombian
Army's ("COLAR") Armored Personnel Carriers ("APC").CRANE CO (CR): Free Stock Analysis ReportMACQUARIE INFRA (MIC): Free Stock Analysis
ReportTEXTRON INC (TXT): Free Stock Analysis ReportUTD TECHS CORP (UTX): Free Stock Analysis
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Textron Marine & Land Systems is specialized in the design,
production and support of advanced marine craft, armored combat
vehicles, turrets and related subsystems. Apart from providing
armored vehicles, the company also offers uninterrupted COMMANDO
fielding, training, maintenance and logistics support throughout
each vehicle's life cycle to its customers.
Textron's APCs are an extended version of the M1117 Armored
Security Vehicle ("ASV"). With an additional two feet length and
six inch internal height, APCs have greater troop carrying capacity
in its areas of operations. The vehicle is used by the U.S. Army
and other militaries in locations including Afghanistan and
The vehicle features a V-shaped hull bottom and 360-degree
protection from direct fire. These vehicles are part of the
COMMANDO Advanced line of armored vehicles that have outstanding
on-road and off-road mobility, thereby allowing them to operate in
urban, jungle, desert as well as mountainous terrain.
Currently, COLAR operates 39 COMMANDO Advanced APCs. Also, under a
Foreign Military Sales contract, it has made a request to purchase
additional APCs. Going forward, these APC contacts would bring in
more vehicle repairs and spare parts sales for the company.
Moreover, the company is working with Colombia to increase the
number of APCs in COLAR units while sustaining its entire vehicle
fleet with a coordinated program of maintenance, training and field
service support. This would become a source of uninterrupted
revenue for the company, going forward.
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. Textron's
geographically-diverse network of aircraft, defense &
intelligence, industrial and finance businesses negates any
specific business risk.
Also, a modest increase in jet deliveries, higher revenue mix of
business jets, growth in aftermarket sales, increase in commercial
helicopter demand, and sales growth at Systems would boost top and
bottom lines of the company. 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 #3 (Hold).
Other stocks worth considering are Crane Co. ( CR ), Macquarie
Infrastructure Company LLC ( MIC ) and
United Technologies Corp. ( UTX ), all with a Zacks
Rank #2 (Buy).