Textron Marine & Land Systems (TM&LS), a unit of Textron Inc. (TXT - Free Report) , has received a contract worth $31.6 million for the supply of 28 COMMANDO Advanced Armored Personnel Carriers (“APCs”), with 40mm per .50 cal remote turrets, to the Colombian Army (COLAR). The company has received this contract from the U.S. Army Tank-Automotive and Armaments Command (TACOM).
Per the contract, the company will also render repair services for two damaged APCs that the Columbian Army has in its inventory. Currently, COLAR operates 39 COMMANDO Advanced APCs.
In March this year, the company had received a contract to provide 12 armored turrets, technical support services, vehicle repairs and spare parts from the TACOM for Colombian Army.
Textron Marine & Land Systems is specialized in the design, production and support of advanced marine craft, armored combat vehicles, turrets and related subsystems. Apart from providing armored vehicles, the company also offers uninterrupted COMMANDO fielding, training, maintenance and logistics support through the life cycle of every vehicle to its customers. Recently, TM&LS developed an improved recapitalization solution for high mobility multipurpose wheeled vehicle.
The COMMANDO Advanced APC is an extended version of the Armored Security Vehicle. With an additional two feet length and six inch internal height, APCs have greater troop carrying capacity in its areas of operations. The vehicle has been used by the U.S. Army and other militaries in locations including Afghanistan and Iraq for more than 10 years.
The vehicle features a V-shaped hull bottom and 360-degree protection from direct fire. These vehicles are part of the COMMANDO Advanced line of armored vehicles that have outstanding on-road and off-road mobility, in terrains ranging from urban, jungle, desert as well as mountainous landscapes.
Textron Inc. is a global multi-industry company that manufactures aircraft, automotive engine components, and industrial tools. The company’s geographically-diverse network of aircraft, defense & intelligence, industrial and finance businesses negates any specific business risk.
Textron is working with Colombia to increase the number of APCs in COLAR units while sustaining its entire vehicle fleet with a coordinated program of maintenance, training and field service support. This would become a source of uninterrupted revenue for the company, going forward. However, we remain concerned about the weak business jet market, budget deficits and political uncertainty. The company presently retains a short-term Zacks Rank #3 (Hold).
Among the stocks worth considering in the space are Lockheed martin Corp. (LMT - Free Report) , Federal Signal Corp. (FSS - Free Report) and ITT Corp. (ITT - Free Report) , all with a Zacks Rank #2 (Buy).