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Lockheed wins $2 billion U.S. missile interceptor deal

Lockheed wins $2 billion U.S. missile interceptor deal

Lockheed Martin (NYSE:LMT) has won a missile defense contract that could be valued at up to $2 billion.

The contract, which was won by Lockheed Martin Space Systems Co., calls for at least 42 interceptor missiles for the U.S. military.

The contract for the Terminal High Altitude Area Defense (THAAD), which must still be finalized with the company, runs through to July 31, 2018, according to the Defense Department.

The Pentagon's Missile Defense Agency said it would combine the order for a third and fourth batch of THAAD interceptor missiles with an order by the Persian Gulf state of UAE which is buying 96 THAAD interceptors to generate cost savings.

Separately, the U.S. Air Force awarded Lockheed Martin a contract to retrofit 40 F-22 fighter aircraft with an automatic backup oxygen supply after some pilots experienced oxygen deprivation when flying the supersonic plane.

The contract is worth $19 million, runs through April 2013, and includes retrofitting 10 spare aircraft. Currently oxygen supply requires manual activation by the F-22 Raptor pilot.

The Pentagon last month announced new safety precautions for its F-22 fighter jets, after a five-month grounding last year, but said it did not rule out grounding the aircraft again.

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