A business wing of General Dynamics Corporation (GD), General Dynamics Ordnance and Tactical Systems (“GD-OTS”), won a contract from the U.S. Army Contracting Command in Redstone Arsenal. This is a five-year fixed-firm-price contract involving production of the Hydra-70 rocket system for all military services.
This 2.75-inch/70mm Hydra-70 air-to-ground rocket comprises two main components – MK66 rocket motor and various warheads. This rocket is used by all branches and allies of the U.S. military for a wide range of mission requirements. It can be deployed from most helicopters and some fixed-wing aircraft.
The work related to the Hydra-70 rocket system program will be executed at the company's facilities located in Camden, Springboro, Anniston and Williston. This is expected to be completed by 2020 and the contract includes five potential options through 2018.
The Hydra-70 rocket, the most commonly used helicopter-launched weapon system, is cost-effective and increases the probability of mission success. Since 1996, GD-OTS has developed more than five million Hydra-70 rockets for the Army’s Joint Attack Munition Systems Project Office.
In Sep 2014, GD-OTS won another contract from the U.S. military for the supply of Hydra-70 rocket for a firm-fixed-price of $58 million with options. GD-OTS is one of the leading manufacturers of mortar weapons and systems, bomb bodies and propellants. It is also engaged in the production of precision metal components and provides an array of services for tactical missile and rocket programs.
Zacks Rank
General Dynamics holds a Zacks Rank #2 (Buy). Other well-ranked stocks in the aerospace and defense industry include Spirit AeroSystems Holdings, Inc. (SPR), Engility Holdings, Inc. (EGL) and Esterline Technologies Corp. (ESL). While Spirit AeroSystems sports a Zacks Rank #1 (Strong Buy), Engility and Esterline carry a Zacks Rank #2.
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