Goodrich Corporation (GR) has received a production order for its SiIMU02 inertial measurement units or IMUs from Belfast-based defense contractor, Thales Air Defence Limited. The order covers more than 1,000 units with deliveries starting in late 2013.
These IMUs will be used as the standard inertial sensor on Thales' new Lightweight Multi-role Missile or LMM. The LMM from Thales is a low-cost, lightweight laser beam-riding missile designed to be launched from a variety of naval, land and air platforms in a wide range of operational roles. Its first application is expected to be the UK Royal Navy's Wildcat helicopter.
Goodrich stated the SiIMU02 unit is extremely small, lightweight and flexible — one-tenth the size of legacy IMUs. Goodrich's Sensors and Integrated Systems team in Plymouth, U.K. will produce the units.
Goodrich is a global supplier of components and systems for communications and avionics. Most of the company’s products are sold to government and commercial customers that generate higher volume sales and create economies of scale, thus helping in winning more cost-sensitive government contracts. The company also provides equipment for this niche market.
The positive case for Goodrich is supported by its geographically diverse customer mix, its wide presence in the commercial and business jets market, resurgence in commercial aftermarket sales, a strong balance sheet, an incremental dividend and an ongoing share repurchase program.
Earlier, in September 2011, United Technologies Corp. (UTX) announced that it would acquire Goodrich for $18.4 billion, including the assumption of $1.9 billion in debt. The deal is expected to close by August-end 2012.
Based in Charlotte, North Carolina, Goodrich Corporation supplies components, systems and services to the commercial, regional, business and general aviation markets in the U.S. and other parts of the world. Goodrich also supplies aircraft and satellite systems to the global military and space markets. Goodrich’s products and services are principally sold to customers in North America, Europe and Asia.
Goodrich presently retains a short-term Zacks #3 Rank (Hold). We have a long-term Neutral recommendation on the stock. The cautious stance stems from the uncertainty in the recovery of the large commercial airplane original equipment market, along with possible defense cutbacks, dependence on international sales, high research and development overheads and regulatory risks.
GOODRICH CORP (GR): Free Stock Analysis Report
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