Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) Brazilian subsidiary AEL Sistemas SA has won a $85 million follow-on contract from Embraer SA (Bovespa: EMBR3; NYSE: ERJ) to upgrade eleven Brazilian Air Force F-5 fighter-bomber jets. AEL is the main subcontractor to Embraer Defense and Security SA, the prime contractor for the project. The contract will be carried out in 2013.
The contract follows AEL's contracts from 2001 and 2007. AEL will provide engineering services and the delivery of all system equipment, including the mission computer, display systems, radar, electronic warfare system, ammunition management system, and other avionics products. AEL will also supply a flight simulator, spare parts and, ground support equipment.
Elbit Systems president and CEO Joseph Ackerman said, "We trust that the new contract will further strengthen the excellent cooperation between AEL, Embraer and the Brazilian Air Force, and we hope that other customers will decide to follow Brazil and select our combat-proven upgrade programs."
Elbit Systems' share price fell 0.2% on Nasdaq Friday to $53.80, giving a market cap of $2.3 billion, but rose 0.7% in morning trading on the TASE today to NIS 190.90.
Published by Globes [online], Israel business news - www.globes-online.com - on April 11, 2011
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