Kaman Wins $70 Million Defense Contract
Bloomfield, Conn.-based Kaman wants to light the U.S. Air Force's fire.
On Monday, Kaman announced that the U.S. Air Force has exercised an option on an underlying defense contract to supply it with Joint Programmable Fuzes. This option exercise, valued at $70 million, could rise even higher in value if two subsequent options are exercised.
Delivery of the optioned fuzes is slated to begin in H2 2014. Deliveries under the other options, if exercised, could continue running through May 2017.
Kaman is currently the only provider of Joint Programmable Fuzes to the Air Force, and it has been so for more than a decade. The company also supplies these fuzes to 23 other nations. The fuze in question is used to designate multiple kinds of bombs, including JDAM and Paveway kits, dropped by everything from F-15 and F-16 fighter jets to B-1 and B-2 bombers to General Atomics' MQ-9 Reaper drone.
Kaman shares are up 0.6% on news of the defense contract, at $37.37.
The article Kaman Wins $70 Million Defense Contract originally appeared on Fool.com.
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