Textron Gets $85M DoD Contract - Analyst Blog
16 Maggio 2013 - 6:30PM
Zacks
Bell Helicopter, a business wing of
Textron Inc. (TXT), clinched an $85.0 million
contract from the Department of Defense ("DOD") to offer
engineering and support capabilities to two of America’s close
allies, Iraq and Taiwan. The Bell helicopters provide civilian
assistance and are used for air ambulance, law enforcement and
transportation services.
Iraq currently operates 30 of Bell
407 helicopters. Taiwan on the other hand has a manufacturing unit
of the UH-1H "Huey" military helicopters licensed under
Textron.
Bell helicopters have expanded its
geographical footprint in countries like Argentina, Brazil, Chile,
Ecuador, Australia, Canada, China, India, Malaysia, Mexico, New
Zealand, Nigeria, Thailand, Venezuela and Vietnam.
Prior to this, Textron secured a
contract from the Delaware State Police for the supply of Bell 429
aircrafts. It also signed a deal with Van Horn Aviation to work
jointly on the design, certification and manufacturing of the rotor
blades of Bell 212 and 412.
Textron has been constantly
upgrading its Bell helicopters to provide more capacity and
high-tech features which have made the product line more attractive
to foreign clients. This effort will certainly help Textron to
create long standing business relationships with its clients.
However, contract order flows have
waned owing to across-the-board defense budget cutbacks in the U.S.
Textron’s Bell Helicopter business reported a revenue decline of
4.5% year over year to $949.0 million in the first quarter
2013.
We expect the uncertain defense
environment to continue given the budget sequestration that came
into effect in March under the Budget Control Act of 2012.
Moreover, a decreasing backlog of orders further signals a
challenging business outlook for Bell helicopter. Given the
negative dynamics that are at play we remain bearish on Textron's
performance. Currently, it holds a Zacks Rank #4 (Sell).
There are however other defense and
aerospace competitors currently performing well and deserve a look.
These are ITT Corporation (ITT), Macquarie
Infrastructure Company LLC (MIC) and Honeywell
International Inc. (HON). All the above carry a Zacks Rank
#2 (Buy).
Based in Providence, R.I., Textron
Inc. operates in the aircraft, defense, industrial, and finance
businesses globally. The company has a market capitalization of
$7.67 billion.
ELEMT-DOGS DOW (DOD): ETF Research Reports
HONEYWELL INTL (HON): Free Stock Analysis Report
ITT CORP (ITT): Free Stock Analysis Report
MACQUARIE INFRA (MIC): Free Stock Analysis Report
TEXTRON INC (TXT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Grafico Azioni DB AG London Lkd to DJ H... (CE) (USOTC:DODXF)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni DB AG London Lkd to DJ H... (CE) (USOTC:DODXF)
Storico
Da Giu 2023 a Giu 2024