ITT Corporation (ITT: 46.91 0.00 0.00%) in partnership with The Boeing Company (BA: 63.88 0.00 0.00%) has won a contract worth $42 million for supplying jamming devices to the U.S. Naval Air Systems Command.The Jammer program, valued at more than $2 billion, aims at substituting the current jamming pods on Boeing EA-18G Growler, the Navy’s attack aircraft, and the F-35 striker aircraft. Superior electronic combat facilities will help disarm the communications systems of enemies.
Boeing will carry out jamming device design and systems integration while ITT will provide electronically steerable antennas and digital excitors. The jammer will be built in a manner that will facilitate easy upgradation.
The work under the contract will be performed at New Jersey and St. Louis. ITT plays an important role in vital markets, including water and fluids management, global defense and security, and motion and flow control. It possesses industry leading brands in the Fluid Technology and Motion & Flow Control businesses. The company is well diversified and serves attractive end markets with a broad geographic footprint.
We are particularly bullish about these two segments: a) water equipment (primarily pumps), which should benefit from the replacement and upgrade of ageing networks in developed markets and the build out of infrastructure in emerging markets, and b) ITT’s Defense business, with the bulk of sales derived from electronic and network-centric warfare.
The Defense Electronics & Services business segment is subject to a number of risks, including defense budgets and government contract requirements and regulations, which could have an adverse impact on the results of its operations.
The Fluid Technology and Motion & Flow Control business segments are subject to certain industry risks, which could have an adverse impact on the results of its operations.
Adverse macroeconomic and business conditions, particularly in the local economies of the countries or regions where the company operates, may negatively affect its revenues, profitability and operations.
The company’s Defense Electronics and Services segment develops, manufactures, and supports high-technology electronic systems and components for worldwide defense and commercial markets, and provides communications systems and engineering and applied research. Principal manufacturing facilities are located in the United Kingdom and United States of America.
ITT Corporation, with 2009 revenues of $10.9 billion, is a global multi-industry leader in high-technology engineering and manufacturing. It is engaged in the design, manufacture, and sale of a wide-range of engineered products and the provision of services.| Analysts' Targets | |
| Deutsche Bank Securities | $58 |
| Neutral | |
| Tuesday, July 13, 2010 | |
| Sterne, Agee & Leach | $59 |
| Mkt Perform | |
| Tuesday, April 13, 2010 | |
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