L-3 Communications Secures $2 Billion Bid To Build Military Transport Planes

The Pentagon announced Wednesday night that L-3 Communications has been awarded a $2.04 billion contract to construct the latest U.S. transport plane, called the C-27J, designed to transport troops and supplies using a shortened airstrip. L-3 beat out larger rival Raytheon Co. in securing the deal, partially because its design carries a larger payload. Shares of L-3 rose 1.29% to $97.90 in after hours trading on the news.The initial order is for 78 airplanes, with a delivery deadline of June 2012. JSA Research analyst Peter Arment believes the deal is "very favorable to L-3; it's a very large contract over a relatively short timeframe." Boeing Co. participated in L-3's winning bid.

Sources: Press Release, Financial Times, MarketWatch, Bloomberg, Reuters, AP
Commentary: L-3 Communications Posts Earnings Beat, Buys Satellite Company • Cramer's Take on LLL
Stocks/ETFs to watch: L-3 Communications Holdings (LLL). Competitors: Honeywell International Inc. (HON), Lockheed Martin Corp. (LMT), Northrop Grumman Corp. (NOC), Raytheon Company (RTN). ETFs: iShares Dow Jones US Aerospace & Defense (ITA), PowerShares Aerospace & Defense (PPA)

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