Textron Marine & Land Systems, an operating unit of Textron Systems, a subsidiary of Textron Inc. (NYSE:TXT), in a smart move added Alcoa Defense, a business unit of Alcoa Inc. (NYSE:AA) to its Ship-to-Shore Connector (SSC) program bidding team. Textron along with its partner in SSC team, L-3 Communications Inc. (NYSE:LLL) is actively competing for the Navy’s Ship-to-Shore Connector (SSC) program.
The SSC program, estimated by the Navy to have a value of $4 billion, facilitates the construction of up to 80 hovercrafts to replace the aging Landing Craft Air Cushion (LCAC) fleet, starting in 2019. The LCAC is a class of air-cushion vehicle (hovercraft) used as landing craft by the U.S. Navy and the Japan Maritime Self-Defense Force (JMSDF). They transport weapons systems, equipment, cargo and personnel of the assault elements of the Marine Air/Ground Task Force both from ship to shore and across the beach.
Textron’s new partner for the bid, Alcoa Defense, is a premier player in designing, developing and manufacturing high-performance aluminum structures optimized for cost and weight. Alcoa’s expertise in aluminum production and design, proven design capability and advanced product manufacturing know-how will come in good stead for the construction of the hovercraft, which will have more than 100,000 lbs of aluminum each.
Alcoa Defense partners with industry leaders to design systems and materials that increase the speed, reach, agility and survivability of strategic platforms. Through an unmatched combination of defense and commercial engineering, Alcoa delivers multi-product, lightweight and cost-effective solutions for programs ranging from the F35 Joint Strike Fighter to the M777 Howitzer to armored tactical and fighting vehicles.
Headquartered in New York City, L-3 Communications is a prime contractor for C3ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems, aircraft modernization and maintenance, and government services. L-3 is also a leading provider of a broad range of electronic systems used on military and commercial platforms.
Textron Marine & Land Systems specializes in the design, production and support of advanced marine craft, armored combat vehicles, turrets and related subsystems. Textron Marine & Land Systems serve military and commercial customers domestically and internationally, and have products operating in more than 35 countries.
Textron Systems manufactures unmanned aircraft systems, advanced marine craft, armored vehicles, intelligent battlefield and surveillance systems, intelligence software solutions, precision smart weapons, piston engines, test and training systems, and total life cycle sustainment services. Textron Systems includes AAI Corporation, Lycoming Engines, Overwatch, Textron Defense Systems and Textron Marine & Land Systems.
Textron Inc. has a global network of aircraft, defense, industrial and finance businesses that provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems.
Textron currently retains a Zacks #3 Rank (Hold). We also maintain a long-term Neutral rating on the stock.
Textron’s future success in the competitive defense industry depends upon its ability to develop and market its defense-related products and services to the U.S. government, as well as its ability to provide people, technologies, facilities, equipment and financial capacity needed to deliver those products and services at maximum efficiency.