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Lockheed Martin (LMT) Clinches $120 M U.S. Navy Contract

Lockheed Martin 's LMT Mission Systems and Training unit of Manassas, VA won a contract from the U.S. Navy for support services of the AN/BVY-1 Integrated Submarine Imaging System. The contract is worth $120.4 million.

This is a modification contract under which Lockheed Martin will exercise an option for engineering services and support of the AN/BVY-1 Integrated Submarine Imaging System. The company will cover necessary service work comprising design, development, testing, reverse engineering, technology insertion/refreshment, engineering services, field engineering services, and system support. The contract is expected to run through Sep 2016.

The Integrated Submarine Imaging System provides mission critical, all-weather, visual, and electronic search, digital image management, indication, warning, and platform architecture interface capabilities. This system is applied in the attack submarine (nuclear propulsion) (SSN) - SSN688 (Los Angeles class); SSN 21 (Seawolf class); submersible, ship, guided, nuclear (SSGN Ohio class); and SSN 774 (Virginia class) submarines with potential for ship, submersible, ballistic, nuclear (SSBN) (Trident class) and other submarines.

Lockheed Martin is the largest defense contractor in the world. Its Mission Systems and Training business, headquartered in Washington, DC, covers some of its high-profile programs including the Aegis Combat System, Littoral Combat Ship, MH-60 helicopter avionics, as well as military and commercial orders.

The prime defense contractor is quite a regular in the U.S. Department of Defense funding list. Apart from domestic contracts, the company also receives contracts from the allied nations. Recently, Lockheed Martin was awarded a foreign military sales ("FMS") contract for Hellfire II missiles to be supplied to Egypt, Pakistan, Tunisia, Indonesia and Iraq. The total value of the contract is $375.8 million.

It also won an FMS contract from the U.S. Air Force for the integration of Joint Air-to-Surface Standoff Missiles onto the Polish Air Force's F-16 jets. The contract for the air-to-ground cruise missiles is an outcome of a U.S. FMS deal with Poland announced in September last year. The deal, valued at $500 million, included the supply of 40 AGM-158 JASSM missiles and upgrades for the aircraft. Per the contract, Lockheed Martin will provide hardware, software, docs and program management apart from the 40 missiles.

Lockheed Martin currently has a Zacks Rank #2 (Buy). Other favorably ranked stocks in the aerospace sector are Leidos Holdings, Inc. LDOS , Northrop Grumman Corporation NOC and General Dynamics GD . While Leidos sports a Zacks Rank #1 (Strong Buy), Northrop Grumman and General Dynamics carry a Zacks Rank #2.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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