Bae Systems (BAESY) Wins $24M Contract From The US Navy
Zacks Investment Research | Aug 16, 2017 09:34PM ET
Bae Systems PLC (NYSE:BA) announced that it has been awarded a $24 million contract by the U.S. Navy for selected restricted availability (SRA) for USS Port Royal (CG 73).
Details of the Contract
Per the contract, the company will provide planning, repair and alteration requirements work for the USS Port Royal (CG 73). The company will conduct repair and alteration to systems during the ship’s life cycle. Work related to the contract will be carried out at Pearl Harbor, HI and is expected to be over by Feb 2018.
Why Bae Systems?
Bae Systems provides advanced, technology-led defense, aerospace and security solutions supported by a skilled workforce of about 83,100 people spreadover its service territory of 40 countries. The company cordially works with customers and local partners, to develop, engineer, manufacture and support products and systems to deliver military capability along with protecting national security and keeping critical information and infrastructure secure.
Defense Scenario
President Trump proposed a 10% budget hike in the 2018 defense budget. This proposal focuses on destroying ISIS, increasing the total number of ships in the U.S. Navy fleet and building more F-35 Joint Strike fighter jets to expand the Air Force’s strength.
Buoyed by this, major defense giants like Bae Systems, Lockheed Martin Corp. (NYSE:LMT) , The Boeing Co. (NYSE:BA) and Northrop Grumman Corp. (NYSE:NOC) have been receiving regular contracts from the different agencies of the U.S. administration as well as foreign allies.
Price Movement
Shares of Bae Systems underperformed the broader Zacks Investment Research
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