Northrop Grumman Corp.’s subsidiary, Northrop Grumman Amherst Systems recently secured a $450-million Foreign Military Sales deal for providing U.S. agencies and other countries with end items, spares, support equipment, testing and training related to its Joint Threat Emitter. The contract was awarded by the Air Force Life Cycle Management Center, Hill Air Force Base, Utah. Northrop’s Amherst Systems business will also provide training and testing support under the indefinite-delivery/indefinite-quantity contract, the Department of Defense said Thursday. Work related to the deal will be performed in Buffalo, NY along with other locations within and outside the United States. This contract involves foreign military sales to U.S. partner countries and is expected to be completed by Dec 5, 2025.
Northrop Grumman’s Joint Threat Emitter is a mobile air defense threat simulator that enables aircrews to train in threat environments matching actual combat conditions. Each of these radar and satellite-based systems can simulate up to six threat systems, and integrate and control multiple JTEs in a coordinated manner to simulate hostile Integrated Air Defense Systems (IADS). It also helps assess the performance of Aircraft Radar Warning Receiver (RWR) and Electronic Countermeasure (ECM) Systems. The JTE helps train military personnel to identify and counter enemy missile and artillery threats. It has a multi-threat, hi-fidelity simulator with realistic effective radiated power levels to help train combat aircrews to defeat or avoid integrated air defense systems (IADS) in a war-like training environment.
Northrop Grumman, being one of the major defense companies in the United States, enjoys a heavy inflow of international orders. The company had Foreign Military Sales of $1,099 million in the third quarter of 2018. Further, its total international sales have witnessed a year-over-year improvement of 27%. We, therefore, expect the aforementioned contract to improve FMS prospects, going forward. Northrop Grumman’s Mission Systems unit, which manufactures complex radar systems, reported third-quarter 2018 revenues of $2.91 billion that moved up 2.6% year over year. The global military radar systems market is anticipated to reach $14.46 billion by 2024, such projections should benefit Northrop Grumman’s Amherst Systems, as the company extensively focuses on technological advancements, and upgrading its radar and satellite systems.