Diversified U.S. conglomerate Textron Inc. TXT announed that its unit Bell Helicopter received an order for 200 upgraded Bell 407 GXPs from Air Methods Corporation AIRM. These helicopters are upgraded to meet the requirement of Helicopter Emergency Medical Services (“HEMS”). Air Methods is the launch customer for Bell 407 GXP.
Air Methods will use these advanced helicopters to extend its medical support to patients across the U.S. Bell 407GXP is the upgraded version of the existing Bell 407GX platform with additional features ensuring a superior performance. Bell 407 GXP will have the capacity to carry an extra load of 50 lbs (22.5 kg) and its new M250 Rolls-Royce engine will improve performance and fuel efficiency.
Timeliness is crucial for saving lives of critical patients and providing the right medical treatment during the golden hour could make a difference between life and death. Bell helicopters play a vital role in transporting patients from remote areas to medical facilities.
This new deal is a continuation of more than three decades of business relationship between Bell Helicopters and Air Methods. The Bell 407 GXP will be delivered to Air Methods from 2016. These new copters will be fitted with United Rotorcraft’s emergency medical services interior, designed with air critical care operators in mind. United Rotorcraft is a division of Air Methods and specializes in designing, developing, testing and implementing industry leading features in avionics and interiors.
Bell is an integral part of Textron’s operations. This segment did not fare well in the fourth quarter with revenues plunging 22.1% year over year to $1,071 million. However, Bell exited the quarter with a backlog of $5.5 billion, up $192 million sequentially. We expect this order, which is one of the largest in the industry, to strengthen the performance going forward.
Textron currently has a Zacks Rank #3 (Hold). Better-placed operators in the space are Huntington Ingalls Industries, Inc. HII and Rockwell Collins Inc. COL, both carrying a Zacks Rank #2 (Buy).
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