Lockheed Martin Corp. LMT has secured a major contract from the U.S. Air Force for production of the Joint Air-to-Surface Standoff Missile (JASSM). The contract is valued at $305.5 million and is expected to be complete by Jun 30, 2018.
The contract calls for the prime defense contractor to produce JASSM as well as to provide system upgrades, integration, sustainment, management, and logistical support.
JASSM is a stealthy, precision-guided cruise missile with a penetrating blast-fragmentation warhead. These missiles are designed with infrared seekers and enhanced digital anti-jam Global Positioning System. They are integrated on the B-1, B-2, B-52, F-16 and F-15E jets of the U.S. Air Force. They are also carried on the F/A-18A/B and F-18C/D aircraft worldwide.
Lockheed has been manufacturing the JASSM cruise missiles at a Troy, AL-based plant since the late 1990s. The company has won orders for 2,106 missiles through 12 production lots, of which over 1,700 have been delivered.
JASSM Extended Range (ER) – a newer version of JASSM – can also be installed on the F-16 aircraft since they are identical in size and capability. However, JASSM-ER is more fuel efficient and is powered by a turbo-fan engine instead of a turbo-jet engine. It can travel more than twice the distance of JASSM.
Last month, Lockheed was awarded a foreign military sales (“FMS”) contract from the U.S. Air Force for the integration of JASSM on the Polish Air Force’s F-16 jets. After Australia and Finland, Poland is Lockheed Martin’s third international customer for these missiles.
Zacks Rank
Lockheed currently has a Zacks Rank #2 (Buy). Some other favorably ranked stocks in the aerospace and defense sector are The Boeing Co. BA, Northrop Grumman Corporation NOC and General Dynamics Corp. GD, all carrying a Zacks Rank #2.
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