3M Company’s (MMM) wholly-owned subsidiary Ceradyne, Inc. recently secured an $80 million delivery order from the U.S. government to supply 77,000 enhanced combat helmets and related spare parts to the U.S. Marine Corp.
Ceradyne has already started producing the helmets for delivery starting this fall and will be deploying Marines in the first quarter of fiscal 2014. The order is part of the procurement program of the U.S. Marine Corps and the U.S. Army.
The newly-designed Enhanced Combat Helmet will be manufactured at Ceradyne’s facility in California. A combat helmet or battle helmet is a type of personal armour that is designed specifically to protect the head during combat. These combat helmets provide improved 50% ballistic and fragmentation protection over other available variants. 3M has a strong expertise and knowledge to supply protection helmets to the U.S. forces. Additionally, the company also makes combat hearing and respiratory protection, body armour and communications systems for the U.S. forces.
3M remains focused on inventing new products and maintaining its competitive edge globally. The rise in demand of such innovative 3M product services is likely to augment its revenues in future.
Together with its subsidiaries, 3M operates as a diversified technology company with manufacturing operations across 70 countries worldwide. The company aims to deliver innovative security solutions to businesses and governments worldwide; thus maintaining the security of people and documents.
3M currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now are Federal Signal Corp (FSS), LSB Industries Inc (LXU) and ITT Corporation (ITT), each carrying a Zacks Rank #2 (Buy).