Textron (TXT.US) shares soared nearly 7% higher today after the company won a contract to build a new long-range attack helicopter for the US Army. The US Army announced that Textron's Bell Helicopter subsidiary will produce the machine:
Textron beat out bids from Lockheed Martin (LMT.US) and Boeigna (BA.US), proving that it can compete with major defense companies for the largest military contracts. The base for the next-generation US machine will be the Bell V-280 Valor helicopter. Winning the powerful tender could give a lot of wind in the sails of the company, whose market capitalization is still around $15 billion. According to Seaport Research, the actual value of the contract over the life of the program could be as high as $80 billion. Bell Helicopter accounted for nearly 25% of Textron's sales in the third quarter of the year:
"We are honored that the U.S. Army has selected the Bell V-280 Valor as its next-generation attack aircraft (...) We intend to honor that confidence by building a truly remarkable and transformational weapon system to meet mission requirements " said Textron CEO Scott Donnelly
Textron is also involved in the production of civilian aircraft, and in April of this year, it acquired the Slovenian Pipistrel brand, which produces small one- and two-seat electric-powered aircraft, for $235 million.
Textron (TXT.US) shares, W1 interval. The stock is approaching major resistance set by the histrionic price peaks from earlier in the year. Source: xStation5
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