Lockheed Martin Wins 3 Defense Contacts Worth $122M
The defense prime Lockheed Martin Corp. (LMT) sealed three contracts from the Pentagon on Dec 8, 2014. The contracts have a cumulative value of $121.7 million.
The order with the highest value, worth $82.8 million, is a follow-on contract to exercise the third option year for logistics program support for Apache Attack Helicopter modernized target designation sight/pilot night vision sensor equipment. Work under this contract is slated for completion by 2015 end and will be performed in Orlando, FL.
The second contract, worth $31.8 million, was handed out by the U.S. Air Force for contractor engineering and technical services (:CETS) in support of the F-16 aircraft for foreign military sales requirements. Under this contract, Lockheed Martin will provide CETS personnel to improve the skills of Air Force military and civilian personnel in systems maintenance. The company will carry out its work at various locations for countries like Bahrain, Chile, Egypt, Indonesia, Iraq, Jordan, Morocco, Oman, Pakistan, Poland, Taiwan and Turkey. It is expected to run through Jun 30, 2017.
The third and minor contract went to Lockheed Martin Aeronautics Co. The contract calls for Lockheed Martin to carry out CETS for Air Force Materiel Command and National Guard Bureau in support of F-16 aircraft at various bases in Utah, California, South Carolina, Arizona, Ohio, Texas and South Dakota. The contract is likely to be completed by Jun 30, 2014.
This company has indeed nabbed quite a few contracts from the U.S. Department of Defense (“DoD”) lately. Though the values of these contracts range from small to big, what is more important, the order flow has not dried up under severe budget scrutinies.
Last month, the company won a $492 million contract from the U.S. Navy to provide non-air vehicle spares, support equipment, Autonomic Logistics Information System hardware and software upgrades, supply chain management, full mission simulators and non-recurring engineering services to support Low Rate Initial Production Lot VII F-35 Lightning II Joint Strike Fighter aircraft.
Recently, Lockheed Martin also received a multi-billion dollar deal from the Pentagon for F-35s (read: Lockheed Martin Seals $4.7B Deal for 8th Batch of F-35s).
Though the sequestration did not leave the company’s top line untouched, continuous order wins still offer some respite from severe budget austerities.
Lockheed Martin holds a Zacks Rank #3 (Hold). Other better-ranked stocks in the same sector include General Dynamics Corp. (GD), Rockwell Collins Inc. (COL) and Engility Holdings, Inc. (EGL), While Engility carries a Zacks Rank #1 (Strong Buy), General Dynamics and Rockwell Collins hold a Zacks Rank #2 (Buy).
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