Defense electronics firm Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has won a contract with Brazilian aircraft company Embraer as part of an upgrade of the AMX jet for the Brazilian Air Force.
Elbit said it was awarded a contract by Embraer for the supply of avionics for the Brazilian AMX jet upgrade project.
The entire contract, including the subsequent production phase, is valued at approximately $187 million and is scheduled to be completed through 2014. Implementation of the production phase following completion of the development and prototype phase is subject to further approval.
The initial development and prototype phase of the contract is in an amount of approximately $67 million.
Elbit Systems was selected as the main subcontractor of Embraer, the prime contractor for the project and the manufacturer of the AMX jet, which is to be supplied to the Brazilian Air Force.
Elbit Systems will collaborate with its wholly-owned Brazilian subsidiary Aeroeletronica S.A. (AEL), located in Porto Alegre, Brazil. Elbit Systems and AEL will supply the central battle mission computer of the AMX, as well as display systems, the ammunition management system and additional systems.
Elbit Systems' Israeli subsidiary, Elisra Electronic Systems will supply the electronic warfare systems as a major subcontractor to AEL.
Elbit Systems president and CEO Joseph Ackerman said, "We believe our selection reflects the satisfaction of our Brazilian customers from our past performance, including our long-standing successful collaboration with Embraer."
Shares in Elbit rose 1.1% yesterday on Nasdaq to close at $46.87, giving it a market cap of $1.97 billion. The share has traded between $41 and $64.20 over the past year.