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Lockheed Martin Aeronautics Company, a key division of Lockheed Martin Corporation (LMT - Analyst Report), received a modification contract worth $101.9 million from the U.S. Department of Defense (DoD) under the Foreign Military Sales (FMS) program.

Per the contract, the company will provide non-recurring engineering and maintenance support for mission systems software and autonomic logistics development of the F-35A Conventional Take Off and Landing Air System for the government of Israel. Lockheed Martin will also provide autonomic logistics hardware to support Israeli pilot training. Work under this contract will be performed in Fort Worth, TX and is scheduled to be completed by Apr 2015.

The Aeronautics business segment includes the company’s largest program – the F-35 fighter jet. Lockheed expects rising F-35 aircraft deliveries to allied countries besides its wide uptake in the U.S. Armed Forces. Net sales from the F-35 program comprised approximately 16% of total consolidated net sales for the first quarter 2014.

The F-35 continues to receive strong support from Congress and the administration despite persistent threats of defense budget cuts. The company expects to generate 20% of total revenues from international sales on the back of strong orders for its F-35 program in 2014.

Recently, the company received another sizable contract of $12.4 billion from the government of Australia. Per the contract, the company will supply 58 F-35s with first delivery by 2018.

Currently, Lockheed Martin holds a Zacks Rank #3 (Hold). Other well-ranked defense players include The Boeing Co. (BA - Analyst Report), Embraer SA (ERJ - Analyst Report) and Alliant Techsystems Inc. (ATK - Analyst Report). All of these stocks hold a Zacks Rank #2 (Buy).

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