Lockheed Martin’s LMT newly acquired unit, Sikorsky Aircraft Corp., won a modification contract worth $354.2 million from the U.S. Army to deliver 29 MH-60R helicopters. The contracting activity is Army Contracting Command, Redstone Arsenal, AL.
The contract was awarded to provide funding for the Navy's fifth program year for the helicopters as well as for associated program and logistics support.
Work is expected to be complete on Dec 31, 2017 and will be performed in Stratford, CT.
Manufactured by Sikorsky Aircraft, MH-60R “Romeo” is the world’s most competent and established Anti-Submarine/Anti-Surface Warfare multi-mission helicopter. It is powered by advanced mission systems and sensors by Lockheed Martin Mission Systems and Training (“MST”), which makes it capable of detecting and combating modern submarines in littoral and open ocean scenarios. Moreover, it can conduct stand-alone or joint anti-surface warfare missions with other Romeo or MH-60S “Sierra” aircraft.
Recently, Sikorsky won two other contracts worth $939.8 million in total from the U.S. Army. One of these, worth $833.3 million, is a modification of a general U.S. Army contract to provide sustainment, Army provisions, Army technical publications, other integrated logistics support. The other one is worth $106.5 million, under which the company will provide technical, engineering, logistics services, supplies and other support.
In Nov 2015, Lockheed Martin acquired Black Hawk helicopter maker, Sikorsky Aircraft, from United Technologies UTX for $9 billion in cash. The deal strengthened Lockheed Martin’s position as the world’s largest defense contractor, pushing it deeper into the military helicopter business. The company has combined Sikorsky with its Lockheed Martin MST business segment.
Lockheed Martin reported stellar third-quarter results with better-than-expected earnings along with higher revenues, solid margins and strong cash flows, buoyed by robust sales of its F-35 Joint Strike Fighter. Solid quarterly results also enabled the company to lift its 2015 guidance for sales, operating profit, and EPS. The takeover of Sikorsky opens key foreign markets for Lockheed Martin, extending its core operations into the $30 billion annual military and commercial rotary wing segment.
Zacks Rank
Lockheed Martin has a Zacks Rank #3 (Hold). A couple of better-ranked stocks include Boeing BA and General Dynamics Corp. GD, both carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment