Lockheed Martin's (LMT) Sikorsky Wins Black Hawk Contract

Lockheed Martin Corp.’s (NYSE:LMT) unit Sikorsky Aircraft Corp. won a contract from the U.S. Army for UH-60M Black Hawk helicopters. This is a modification contract, which is valued at $88.1 million, and the contracting activity is Army Contracting Command, Redstone Arsenal, AL.

Per the contract, Sikorsky will exercise an option to deliver 8 units of UH-60M Black Hawk helicopters. Work is scheduled to be complete by Jun 30, 2017, and will be performed in Stratford, CT. The contract will use fiscal 2016 other procurement funds.

Sikorsky-built UH-60M Black Hawk is a twin-engine helicopter with four blades and medium-lift utility. Even in the harshest of conditions, this aircraft is capable of providing constant, fail-safe service. Moreover, the aircraft is integrated with the U.S. Army's Future Combat Systems and automated aircraft health monitoring system and has the ability to provide superior vertical lift.

Lockheed Martin purchased Black Hawk helicopter maker, Sikorsky Aircraft, from United Technologies Corp. (NYSE:UTX) in Nov 2015. The deal boosted Lockheed’s position as the world’s largest defense contractor, pushing it deeper into the military helicopter business. The purchase of Sikorsky added the well-known product – Black Hawk – to Lockheed Martin’s helicopter business.

In Mar 2016, Sikorsky Aircraft won a modification contract from the U.S. Army for exercising an option for 35 UH-60M helicopters.

Zacks Rank

Lockheed Martin currently has a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the aerospace and defense equipment industry include TransDigm Group Incorporated (NYSE:TDG) and Engility Holdings, Inc. (NYSE:EGL) . While TransDigm sports a Zacks Rank #1 (Strong Buy), Engility carries a Zacks Rank #2 (Buy).

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