Handout picture shows Lockheed Martin jet plant in Fort Worth Texas
Lockheed Martin received a $1.05 billion, five-year contract from the U.S. Navy to provide more than 200 digital cockpits for two of the armed service's helicopter series. Shown is the company's plant in Fort Worth, Texas. REUTERS

The Lockheed Martin Corp. (NYSE: LMT) received a $1.05 billion, five-year contract from the U.S. Navy to provide more than 200 digital cockpits for two of the armed service's helicopter series.

The contract encompasses 162 cockpits, integrated mission systems, and sensors for the MH-60R Romeo, an anti-surface and anti-submarine helicopter, as well as 62 cockpits for the MH-60S Sierra, a resupply and search-and-rescue helicopter, the company said Thursday.

The Navy already operates more than 300 of the helicopters. Multiyear contracts such as the one awarded have stricter criteria than do annual deals, with double-digit percentage savings a must.

This contract award ensures uninterrupted, on-time deliveries of the MH-60R and MH-60S helicopter to the U.S. Navy fleet, Dan Spoor, vice president of aviation systems for Lockheed Martin's mission systems and sensors business, said in a statement. Plus the multiyear structure, versus an annual contract, allows us to provide our customer with more than 10 percent savings annually, surpassing Pentagon cost predictions.

The Bethesda, Md.-based company reported net sales of $46.5 billion in 2011. Its shares closed down 19 cents to $90.15 on Thursday.

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