Veritas Challenges L-3 for $4.6 Billion Iraq Job (Bloomberg)
Summary: L-3 Communications (NYSE:LLL), which until now has dominated the market for military translation services, is facing new competition from Veritas Capital which has moved into military language services by purchasing McNeil Technologies and DynCorp International. Veritas is now bidding against a partnership of L-3 and Northrop Grumman (NYSE:NOC) for a U.S. Army contract worth $4.6 billion. L-3 generated $295 million from translation services in the first half of 2006, equivalent to 5% of total revenue. U.S. army translation contracts have grown dramatically in recent years, with $5.52 billion in contracts expected to be awarded next month versus $10 million for all of 1999.
Related links: Full article • L-3 Communications Officially Put Up for Sale • DynCorp International IPO: Beware the Debt • Elbit Leads in the Smart Defense Niche • Defense Aircraft and Parts Showing Strong Potential as Shipment Orders Increase
Potentially impacted stocks and ETFs: Harris Corp. (NYSE:HRS), Rockwell Collins (NYSE:COL), Raytheon (NYSE:RTN), Boeing (NYSE:BA), Lockheed Martin (NYSE:LMT), General Dynamics (NYSE:GD).
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