Deals Involving Lockheed Martin Weapons Could Total $7.6 Billion
As defense contractors buckle down for sequestration here in the U.S., they're seeing a sunnier picture overseas. On Friday, the U.S. Defense Security Cooperation Agency notified Congress that it is in talks with the governments of Qatar and the United Arab Emirates regarding possible weapons sales with estimated costs of $6.5 billion and $1.135 billion, including associated equipment, parts, training, and logistical support.
The weapons in question -- Lockheed Martin's (NYS: LMT) Terminal High Altitude Area Defense system, or THAAD -- are designed to intercept and destroy medium-range and long-range ballistic missiles. They are specifically designed to work in conjunction with advanced ship-borne radar systems carried by U.S. Naval Aegis-class cruisers and destroyers.
If approved by Congress, this would be Qatar's first purchase of the THAAD system, and the UAE's second.
The agency lists Lockheed Martin Space Systems and Raytheon (NYS: RTN) as principal contractors in the UAE deal, while the Qatar deal lists Lockheed Martin Space Systems as principal contractor and Raytheon as subcontractor.
The article Deals Involving Lockheed Martin Weapons Could Total $7.6 Billion originally appeared on Fool.com.Fool contributor Rich Smith has no positions in the stocks mentioned above. 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.