Lockheed Martin Nabs $932 Million THAAD Interceptor Award

Lockheed Martin (NYSE: LMT) has been awarded an extra $932 million to supply intermediate-range interceptor missiles to the U.S. and Saudi Arabia. The contract is another sign of the missile and missile defense powerhouse growing inside Lockheed's vast defense portfolio.

The Pentagon on Tuesday announced a contract modification to add the new Terminal High Altitude Area Defense (THAAD) one-shot interceptors. Foreign military sales funds earmarked for the Kingdom of Saudi Arabia will pay for $605 million of the award, with the rest coming from U.S. government funds.

The award comes nearly a year after Lockheed Martin received its first down payment on a $15 billion missile defense system for the Saudis that at the time seemed vulnerable to cancellation due to growing tensions between Saudi Arabia and Western governments. But it now seems clear the THAAD system will be deployed in the kingdom and is a clear priority for U.S. military planners trying to provide global coverage to protect troops and assets in harm's way.

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Source Fool.com