Defense contractor General Dynamics Corporation (GD) announced that its unit Electric Boat received two modification contracts from the U.S. Navy having a combined worth of $32.9 million.
Electric Boat, a wholly owned subsidiary of General Dynamics, 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.
Per the first modification contract, Electric Boat will procure, manufacture and test prototype material and equipment to be used in the production of the Common Missile Compartment for the United Kingdom's Successor ballistic-missile submarine and the U.S. Ohio replacement submarine. This new $21 million contract modifies the $76 million contract awarded in 2008 and has a potential value of $692 million if all options are exercised.
Previously, in July 2011, Electric Boat received another modification contract worth $15.8 million from the U.S. Navy to continue with the engineering, technical services, concept studies and design of a Common Missile Compartment.
The Common Missile Compartment forms an integral part of these classes of submarines helping to manage missile tubes and accompanying systems that are used to launch new ballistic missiles from these submarines.
Per the second modification contract worth $11.9 million, Electric Boat will continue to support submarine repair work at Portsmouth Naval Shipyard in Kittery, Maine. This new contract is a part of the basis ordering agreement between the Navy and the company broached in September 2010. The company had then received a contract worth $11.7 million from the Navy to support submarine maintenance and repair work at Portsmouth Naval Shipyard in Maine and Puget Sound Naval Shipyard in Washington.
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.
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