Lockheed Martin Corporation (LMT - Free Report) won a $73.7 million contract from the U.S. Hill Air Force Base for providing support for the maintenance and repair of the F-22 fighter jets. The depot is currently being set up at Hill Air force base in Ogden, Utah.
The program is expected to begin in the first quarter of 2013 and is projected to be wrapped up by year-end 2013. The deal is a modification of the original $258.76 million contract awarded in Feb 2008.
The aforementioned program is part of the U.S. Air Force’s recent focus on the sustainment of the F-22 raptors, given the receding production levels of the concerned jets. The Air Force has been busy handing out contracts to private defense operators for delivering maintenance services to planes at the government bases in the U.S.
Lockheed Martin is a member of the F-22 partnering activation team and will support the establishment of the depots situated at different Air Force bases. The company will also participate in carrying out management and integration works of other defense manufacturers.
Rockwell Collins (COL - Free Report) was another defense entity that extended its technical capabilities for the development of the Warner Robins Air Logistics Center in Iowa. The facility was established to offer maintenance services to F-22 Communications, Navigation and Identification (“CNI”) avionics.
We believe the probability of defense spending cuts will hinder the company’s future prospects. However, Lockheed Martin’s diversified operations in unmanned systems, force protection, cyber-security and missile defense operations will help in maintaining its growth momentum. Also, the significant backlog orders of $75.6 billion will further the near-term top-line, going forward.
Lockheed Martin currently retains a Zacks Rank #3 (Hold). Recently, the company clinched a $104 million contract to offer technical support to the ground control systems of the Global Positioning System groups.
General Dynamics Corporation (GD - Free Report) , a Zacks Ranked #3 player, is also gearing up its logistics and support division. It has acquired a contract from the U.S. Navy for the supply of maintenance, repair, alterations and testing services to the nuclear submarine, USS Mississippi.
With a market capitalization of $30.07 billion, the Maryland based aerospace and defense company, Lockheed Martin primarily engages in research, design, development, manufacture, integration, and sustainment of advanced technology systems and products.