Textron Lands 2 Foreign Military Sales Contracts Worth $85 Million

Bell Helicopter Textron (NYSE: TXT  ) landed a sizable Pentagon contract in support of two U.S. allies Tuesday.

Specifically, Textron was awarded a foreign military sales contract worth up to $85.4 million to provide engineering and support services to the governments of Iraq and Taiwan. The Pentagon's announcement of Tuesday's award was short on specifics. However, it is known that Iraq operates a fleet of at least 30 Bell 407 helicopters -- a civilian-grade utility helicopter often used for air ambulance, law enforcement, and also transport work.

In Taiwan, the company's presence is even greater. The Taiwanese Army's fleet of UH-1H "Huey" military helicopters was manufactured in Taiwan under license from Textron.

Tuesday's $85.4 million award amounts to less than 1% of the revenues Textron collects in a year. However, these revenues belong to Textron's most profitable manufacturing business. The company's Bell Helicopter division earns operating profit margins of 15% on each revenue dollar, dwarfing the profit margins at Textron's Cessna, Textron Systems, and Industrial divisions.

link


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2432591, ~/Articles/ArticleHandler.aspx, 8/29/2014 4:27:48 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement