Northrop Grumman to Supply LN-200S to Lockheed Martin
Northrop Grumman Corporation NOC has won a contract from Lockheed Martin Corporation LMT for an undisclosed amount. Northrop Grumman will provide its lightweight, affordable navigational element, LN-200S fiber-optic Inertial Measurement Unit (IMU), which is capable of sensory functions. This will be fitted in the LM 300 satellite bus.
Northrop Grumman has a strong presence in the U.S. Air Force and Space & Cyber Security programs. Northrop’s product line is well positioned in high-priority categories, such as defense electronics, unmanned aircraft and missile defense. Foreign military sales act as a key performance catalyst for Northrop.
Last month, Northrop Grumman won a $4.8 million contract from the U.S. Air Force to support the modernization of its Global Positioning System infrastructure.
Over the last three years, the global aerospace & defense industry has been affected by declining defense spending. However, the industry is poised for growth in 2016, primarily fueled by increases in the U.S. defense budget and a meteoric rise in global security threats. As a result, global revenues in the defense sector are expected to return to growth in 2016, as governments equip their armed forces with modern defense weapons platforms and next-generation technologies
Northrop announced a restructuring of its business to focus on its space and airborne ISR business. The defense giant split its Intelligence, Surveillance Reconnaissance and Targeting Systems (“ISR&TS”) division into two new entities: Airborne ISR&TS and Space Intelligence, Surveillance & Reconnaissance Systems. President Obama emphasized on ISR activities in the FY16 defense bill and Northrop’s timely shift in focus toward ISR technologies will allow the company to witness significant gains, going forward.
Zacks Rank
Northrop Grumman currently has a Zacks Rank #2 (Buy). Leidos Holdings, Inc. LDOS and General Dynamics Corporation GD are some of the other favorably ranked stocks in the aerospace and defense sector. While Leidos sports a Zacks Rank #1 (Strong Buy), General Dynamics holds the same Zacks rank as Northrop Grumman.
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