Textron Lands 2 Foreign Military Sales Contracts Worth $85 Million
Bell Helicopter Textron 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.
The article Textron Lands 2 Foreign Military Sales Contracts Worth $85 Million originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Textron. 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.
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