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United States : $595M FMS Modification Contract secured by Lockheed Martin.

A foreign military sales modification contract worth $595 million from the U.S. Army is secured by Lockheed Martin Corp. ( LMT ).

The contract secured by Lockheed Martin Missile and Fire Control (MFC) is intended at procuring PATRIOT Advanced Capability (PAC-3) production items, comprising 152 PAC-3 cost reduction initiative missiles, 15 PAC-3 launcher modification kits, the associated ground equipment, tolling and initial spares.

The deal comprises foreign military sales to prominent customers like Qatar, Taiwan, Kuwait and the United Arab Emirates (UAE). The contracting activity is the Army Contracting Command, Redstone Arsenal (Missile), Alabama. The tentative date of the completion of the order is May 31, 2016.

The PAC-3 missile is a extremely advanced air defense missile capable of defending against even the most advanced cruise missiles. Lockheed Martin is a major contractor on the PAC-3 missile segment of the Patriot air defense system. It boasts a diverse customer base counting the U.S. Army and other international players like Japan, Taiwan, Germany, the Netherlands, Kuwait, Qatar and the UAE.

Lockheed Martin has been capable to increase its customer base even in the face of a harsh budget environment mainly because of its continued product innovation efforts and diversified operations. It has managed to seal one lofty deal after another.

Lockheed Martin in Jul 2014 obtained a $212 million contract from the U.S. Army Aviation and Missile Command for providing maintenance and surveillance services for PAC-3. Back in Apr 2014, the company received a enormous $611 million production order for PAC-3 MSE missiles and Launcher Modifications Kits.

Lockheed Martin at present holds a Zacks Rank#3 (Hold). Better-ranked stocks in the sector comprise Air Industries ( AIRI ), Boeing ( BA ) and General Dynamics ( GD ). Whereas Air Industries possess a Zacks Rank #1 (Strong Buy), Boeing and General Dynamics both carry a Zacks Rank #2.

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Publication:Mena Report
Geographic Code:7UNIT
Date:Oct 17, 2014
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