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Lockheed (LMT) Receives Contract to Support F-35 Training

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Defense contractor Lockheed Martin Corporation (LMT - Free Report) received a nearly $20.8 million contract from the U.S. Navy for the procurement, delivery, installation, configuration, and standup of the Naval Air Station Lemoore Training Infrastructure System and Pilot Fitting Facility in support of the F-35 Lightening II aircraft.

The F-35 Lightning II is a 5th Generation fighter aircraft. The fighter jet combines advanced stealth capabilities with fighter aircraft speed and agility, fully-fused sensor information, network-enabled operations and advanced logistics and sustainment.

Nearly 90% of the contracted work will be performed in Orlando, FL, 6% in Greenville, SC and 4% in Fort Worth, TX.  Work is expected to be completed in Mar 2019.

Importance of Tanning Facility

The F-35's advanced stealth system allows pilots to penetrate areas without being detected by radars that was earlier impossible for legacy fighters to evade. However, a pilot needs to be properly trained in stimulated conditions to utilize fully this advanced aircraft in combat situation.

Hence, these training facilities are essential for smooth operations of the aircraft and will equip the pilots with the necessary skills for the proper handling of these advanced fighters.

F-35 Program

Lockheed Martin has a wide assortment of defense products which is in demand in the U.S. and among allied nations. The sale of F-35 aircraft is an important component in the sales mix. The F-35 program generated 20% of total consolidated net sales of Lockheed in 2015.

Backlog

The backlog of orders gives a visibility to future revenues of the company. Plus, this shows the willingness of the customers to wait for desired products. This is due to the quality of the products offered by the defense companies.

Lockheed Martin continues to have a strong backlog. At the end of the second quarter, it had a backlog for 107 F-35 aircraft. Lockheed Martin ended the second quarter (on Jun 26, 2016) with $96.4 billion. Thanks to its wide product offering, Lockheed continues to receive a steady stream of defense contracts.

Other defense companies also show a strong backlog of orders in their kitty. The Boeing Company (BA - Free Report) exited the second quarter with a backlog of $472.2 billion. L-3 Communications Holdings exited the second quarter with a funded backlog of $8.1 billion. General Dynamics (GD - Free Report) exited the quarter with a backlog of $63.2 billion.

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