Kaman to Ride Growth Track on Defense Contract Deliveries

Kaman Corporation KAMN has proudly announced the acceptance of its SH-2GI Super Seasprite helicopter by the New Zealand Ministry of Defense (MoD). The approval has taken place at the company's Bloomfield manufacturing facility in Connecticut. The modern helicopter will be used by the New Zealand Defense Force (NZDF).
    
Delivery Details

In May 2013, Kaman secured a $120 million contract from the MoD. The deal involved procurement of 10 SH-2GI Super Seasprite helicopter's, flight stimulator and required spare parts. Also, as per the contract, Kaman was supposed to provide logistics support to NZDF. The delivery of the first SH-2G(1) helicopter marks a prominent success for the company. By the end of 2015, Kaman aims to deliver the other nine helicopters and related spare parts to MoD.

Benefits of the Deal

With the delivery of SH-2G Super Seasprite helicopters, Kaman will equip MoD with an advanced maritime weapon system. This helicopter is presently used by the Egyptian Air Force, Royal New Zealand and Polish Navy. By successfully delivering such prestigious defensive contracts, Kaman will augment its business value in the market and hence, should generate better financial results in the upcoming quarters.

Moving Forward

Kaman manufactures and sells different types of aerospace and defense products. Since its inception in 1945, the company has remarkably improved its goodwill in the market with superior non-imitable product and service offerings. In 2002, Kaman acquired a monopolized status for supplying Joint Programmable Fuzes to the U.S. Air Force. Though primarily used in bombs, these fuzes also form part of other defensive weapons of U.S. military.

Furthermore, Kaman is the largest supplier of integrated aerostructural components, offering diversified aerostructure solutions such as designing, tooling, supporting, manufacturing and testing.  

With a market capitalization of $1.05 billion, Kaman currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering in the industry include Blount International Inc. BLT, The Babcock & Wilcox Company BWC and Barnes Group Inc. B. While Blount International sports a Zacks Rank #1 (Strong Buy), both Babcock & Wilcox Company and Barnes Group carry a Zacks Rank #2 (Buy).