Lockheed Martin Corporation (LMT) has delivered the 17th and final CC-130J Super Hercules aircraft to the Royal Canadian Air Force (“RCAF”).
In December 2007, the company had entered into an agreement worth $1.4 billion with the Government of Canada. Per the contract, Lockheed Martin had to deliver 17 CC-130J Super Hercules aircrafts and allied equipments and services to the RCAF by 2012. The company delivered the first CC-130J Super Hercules aircraft in June 2010. The RCAF deployed these aircrafts in Canada and several other nations including Libya and Afghanistan for humanitarian relief and military missions.
Lockheed Martin’s C-130J "Super" Hercules is a four-engine turboprop military transport aircraft. It is the latest addition to the Hercules fleet. It utilizes advanced technology and aircraft components, which include Rolls-Royce AE 2100 D3 turboprops with Dowty R391 composite scimitar propellers, digital avionics, and has reduced crew requirements. C-130J's crew includes two pilots and one loadmaster.
Lockheed Martin is a major U.S. defense contractor with a platform-centric focus. This guarantees a steady inflow of follow-on orders. The company benefits from a leveraged presence in the U.S. Army, Air Force and the Navy. The demand for Lockheed’s products extends beyond the U.S. borders, as evident from the RCAF contract. The company has provided more than 250 CC-130J Super Hercules aircrafts to its global customers.
We expect the company to benefit from its focus on platform programs, such as the C-130 Hercules & C-5 Galaxy transport aircrafts, F-16 Fighting Falcon multi-role jet, the Littoral Combat Ship, the AEHF and the Global Positioning Satellite III system, and the Terminal High Altitude Area Defense system.
But, we are skeptical about the limited military ammunition orders, primarily for F-35 Joint Strike Fighter, due to proposed U.S. defense budget cutbacks. Lockheed Martin Corporation retains a Zacks #3 Rank, which translates into a short-term Hold rating.
Bethesda, Maryland-based Lockheed Martin Corporation is a global security and aerospace company that is principally engaged in the research, design, development, manufacture, integration and maintenance of advanced technology systems, products and services. The company competes with Northrop Grumman Corporation (NOC).Read the Full Research Report on NOC
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