Lockheed Martin (LMT) Awarded $1B Contract by the Pentagon
Shares of the Lockheed Martin Corporation (LMT) were up +2.18 or +0.99 percent to $221.98 per share in Thursday’s premarket after news that the company had been awarded a contract worth over $1 billion by the Pentagon. Lockheed Martin stock closed at $219.80 per share, down -0.67 or -0.30 percent in Wednesday’s regular trading session.
Bethesda, Maryland based Lockheed Martin Corporation is the result of the $10 billion 1995 merger of Martin Marietta and the Lockheed Corporation, and is a major global aerospace and defense contractor.
The U.S. Air Force ordered 32 C-130J Super Hercules military aircraft, with the work expected to be completed by 2020. The company announced earlier this year that it had arrived at a tentative verbal agreement with the U.S. Air Force on a five year contract to supply as many as 83 C-130J Super Hercules transport planes to the Marine Corps and the Coast Guard as well as the Air Force.
The C-130J Super Hercules was introduced in 1999 and is a four engine turboprop transport aircraft specifically designed for military purposes and able to land in austere areas on makeshift runways. The plane is an update of the Lockheed C-130 Hercules, which has been in service for 50 years providing support for military, humanitarian aid and civilian operations such as fighting forest fires.
The plane’s primary users are the U.S. Air Force and Marine Corps, the UK Royal Air Force and the Italian Air Force. The plane is also used by the Indian Air Force, the Royal Australian Air Force, Canadian Royal Air Force and the Israeli Air Force among others.
The Pentagon’s daily digest of contract awards, released yesterday after the market close noted that, “Lockheed Martin Corp., Marietta, Georgia, has been awarded a $1,060,940,036… contract for C-130J multi-year production aircraft. Work will be performed at Marietta, Georgia, and is expected to be complete by April 30, 2020”.
In addition to the Pentagon contract, Lockheed Martin yesterday announced it had landed a contract with the UK Royal Air Force. The contract is for support of their fleet of transport aircraft made up of C-130Js worth $547.5 million. The contract was awarded to the Hercules Integrated Operational Support Team or HIOS, consisting of Lockheed Martin and two UK firms, Rolls Royce and the Marshall Aerospace and Defense Group. The UK contract follows a November 11th approval by the U.S. government for Lockheed Martin to sell C-130J military transport planes and equipment to France in a $650 million deal.
Lockheed Martin stock is trading just five points from its yearly high with this morning’s premarket activity. The stock continues to outperform the market and probably will test its yearly high in the near future.
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