Rolls-Royce Inks $1 Billion C-130J Super Hercules Deal With Lockheed Martin Corporation

Rolls-Royce and Lockheed Martin have signed a deal worth up to $1 billion, which will have Rolls-Royce be the official supplier of the engines for C-130J planes through 2025.

Feb 12, 2014 at 1:48PM

Today Rolls-Royce Corp. (NASDAQOTH:RYCEY) announced it has reached an agreement with Lockheed Martin (NYSE:LMT) to provide approximately 600 engines that will be used to power C-130J Super Hercules aircraft over the next decade. The agreement is worth up to $1 billion, according to Rolls-Royce.

"Lockheed Martin and Rolls-Royce have partnered for decades to produce thousands of the world's leading medium transport aircraft," said  Rolls-Royce executive Tom Bell in a statement. "Our new engine agreement secures that relationship for years to come, enabling operators to continue to enjoy the versatile, powerful and fuel efficient aircraft they have come to appreciate through 1 million flight hours and counting."

The new agreement will make AE 2100 by Rolls-Royce the engine of choice for every type of C-130J aircraft through 2025. In addition, the agreement will service contractual obligations both in the United States and internationally from 2014 to 2018. Lockheed Martin has delivered more than 300 of the four-engine transportation aircraft to customers in 16 countries.

"This agreement is a very important step in providing our customers the most affordable airlifter in the world," added  Lockheed Martin vice president and general manager of the C-130 programs, George Shultz, in the Rolls-Royce press release. "The C-130J Super Hercules has proven the 'value of the power' as the Rolls-Royce AE 2100 propulsion system allows the Super Hercules to perform any mission, anywhere, any time."

Rolls-Royce highlighted that it has delivered more than 1,500 of the C-130J engines, which are made in Indianapolis, to Lockheed Martin already through their previous agreements. The engine powers all of the C-130Js, which have logged more than 1 million flight hours.


Patrick Morris has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information

Compare Brokers