Market Overview
BankingMyWay.com RSS FEEDS
|
Updated from 7:06 p.m. EST
OKLAHOMA CITY -- In the race to sell mine-resistant ambush-protected vehicles, Navistar (NAVZ - Cramer's Take - Stockpickr) has blown past rival Force Protection (FRPT - Cramer's Take - Stockpickr) once again. When the U.S. military placed its final MRAP order of the year -- handing out three contracts worth a combined $2.66 billion -- Navistar walked away with more than 40% of the order for itself. In fact, so did British-owned BAE. That left Force Protection -- once the leader of the group -- with less than 15% of the total share. The news, disclosed late Tuesday, wrecked Force Protection's stock once again. The shares, already battered this month by concerns about this order, plunged 31% to $4.09 in after-hours trading. At this point, it seems, MRAP has a new leader. Navistar's International Military and Government division scored a $1.12 billion contract for 1,500 of its Category I MRAP vehicles. In contrast, Force Protection will collect $378 million for 178 of its Category I and 180 of its Category II MRAP vehicles combined. Navistar specializes in the lighter Category I vehicles, while Force Protection -- until now -- has managed to dominate orders for heavier vehicles in the Category II arena. This time around, however, the U.S. military actually awarded its largest Category II contract to a foreign-owned operator instead. BAE fielded a $645 million order for 600 of its heavy-duty Category II vehicles. Armor Holdings, which was recently acquired by BAE, secured a $458 million order for 668 of its Category II vehicles as well.
Go to NEXT PAGE
RELATED STORIES Aerospace/Defense Force Protection Rolls Backward 12/17/2007 3:57 PM EST A Friedman Billings downgrade nearly erases all of Friday's big gains. Aerospace/Defense Force Protection Digs Out of Ditch 12/14/2007 4:30 PM EST Reassuring words the CEO help shares jump after a brutal week. Aerospace/Defense Merger Prospects Elude Force Protection 12/12/2007 12:10 PM EST Buyout chatter that has propped the stock up is fading as the vehicle maker struggles.
|