Capital Goods Sector Review: Boeing Locks in Order with Lion Air, Great Lakes’ New Project

Great Lakes Dredge & Dock (NASDAQ:GLDD) announced last night its participation with DEME in the Wheatstone LNG Project dredging works in Australia. The total subcontract represents a value of about $1.21B, of which Great Lakes will perform mechanical dredging on the project. Great Lakes currently expects to realize approximately $180M in revenue on this project with the potential for greater income.

The shares closed at $6.89, up $0.76, or 12.4%, on the day. Its market capitalization is $406.24 million.

The Boeing Company (NYSE:BA) and Jakarta-based Lion Air today finalized a firm order for 201 737 MAXs and 29 Next-Generation 737-900ERs, or extended range. The agreement, first announced last November in Indonesia, also includes purchase rights for an additional 150 airplanes. With orders for 230 airplanes valued at $22.4B at list prices, this deal is the largest commercial airplane order ever in Boeing’s history by both dollar value and total number of airplanes. Lion Air will also acquire purchase rights for an additional 150 airplanes. To date, the 737 MAX has orders and commitments for more than 1,000 airplanes from 15 customers and the Next-Generation 737 family has won orders for more than 6,600 airplanes.

The shares closed at $75.56, up $0.71, or 0.95%, on the day. Its market capitalization is $56.35 billion.

Lockheed Martin Corp. (NYSE:LMT): Pratt & Whitney’s F119, the world’s first fifth-generation engine and the predecessor to the F135, has surpassed the 200,000 flight hour milestone powering Lockheed Martin’s (NYSE:LMT) F-22 Raptor. This milestone recognizes the F119 as a fully mature engine. In addition, the F119 has demonstrated the safest and most reliable introduction of a fighter engine in United States Air Force history. Pratt & Whitney is a United Technologies Corp. (NYSE:UTX) company.

The shares closed at $88.45, up $0.22, or 0.25%, on the day. Its market capitalization is $28.40 billion.

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