Lockheed Martin Corporation Wins $157 Million Hellfire Missile Contract

The Department of Defense awarded only six defense contracts Monday, worth a total of $201.4 million. One single company won more than three-quarters of these funds, however, in a single contract win: Hellfire Systems.

Hellfire, as we've discussed in the past, is the wholly owned Lockheed Martin subsidiary that manufactures Hellfire air-to-ground missiles for the military. Originally a joint venture between Lockheed and Boeing , Hellfire is believed to still be paying Boeing residual "fee-per-missile" payments for each missile it sells. However, the bulk of the company's revenues go to Lockheed.

In the instant contract, Hellfire was awarded a $157.4 million contract modification, exercising an option to have Hellfire supply the militaries of Saudi Arabia, Jordan, and Indonesia with an unspecified number of Hellfire II missiles. Delivery of these missiles is due Nov. 30, 2016.

The article Lockheed Martin Corporation Wins $157 Million Hellfire Missile Contract originally appeared on Fool.com.

Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.