Defense contractor General Dynamics Corporation (GD) announced that its unit Electric Boat received a modification contract worth $15.8 million from the U.S. Navy.
Electric Boat will continue to work on the development of Common Missile Compartment, which is produced for the United Kingdom's Successor ballistic-missile submarine and the U.S. Ohio replacement submarine.
Per the contract, Electric Boat will continue with the engineering, technical services, concept studies and design of a Common Missile Compartment. This new contract has a potential value of $651 million if all options are exercised and modifies the $76 million contract awarded in 2008. The company expects to complete the contracted work by the end of 2011.
In January 2011, Electric Boat received another modification contract worth $152 million from the U.S. Navy to continue with the work on the development of the Common Missile Compartment.
The Common Missile Compartment forms an integral part of these classes of submarines as it will help to manage the missile tubes and accompanying systems that would be used to launch new ballistic missile from the submarines.
Electric Boat has been working on submarine technology for over a century. The unit's expertise in this specialized niche has enabled it to win consistent contracts from the U.S. Navy. Earlier in the month, the U.S. Navy awarded a $12.5 million contract modification to develop advanced submarine technologies for current and future undersea platforms.
General Dynamics currently retains a Zacks #3 Rank (short-term Hold rating). Its peers The Boeing Company (BA), Lockheed Martin Corporation (LMT) and Textron Inc. (TXT) also have a Zacks # 3 Rank (short-term Hold Rating).
Falls Church, Virginia-based General Dynamics, with its units, operates in business aviation, land and expeditionary combat systems, armaments and munitions, shipbuilding and marine systems, and information systems and technologies.
BOEING CO (BA): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
Be the first to comment