The Boeing Company
General Dynamics Corporation
) have won contracts from the U.S. Department of Defense (DoD).
In this occasion, the DoD has awarded nine separate contractors
worth $242.1 million.
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Per the contracts, Boeing and General Dynamics along with other
defense contractors will provide missiles support and
environmental remediation services, and other kinds of naval as
well as air-based technological assistance.
Boeing has received a modification contract, worth $15.9 million,
for maintenance and technology restoration of the Combat Track
II. The company will roll out the deliveries from Chantilly, Va.
The contract is expected to be completed by Jun 25, 2016.
General Dynamics' unit General Dynamics Electric Boat has
received a cost-plus-fixed-fee modification contract, worth $7.6
million, to procure and construct a sea sentry mast and sensor.
The contract is scheduled to be completed by Aug 2017.
A few days ago, Boeing has received a firm-fixed-price multi-year
contract, with a maximum base value of $3.4 billion, to construct
the remanufactured and new-build CH-47F cargo helicopters.
The defense operators' performance depends on the orders coming
from the national as well as international defense
establishments. U.S. defense budget cuts due to the ongoing
sequester could impact the performance of the defense operators.
We believe the defense companies' effort toward wining more
international orders will enable them to uphold a regular revenue
flow. Some companies are also repositioning themselves in order
to trim down operating expenses and streamline their operations.
These steps will help the defense companies to tackle the ongoing
Both Boeing Company and General Dynamics currently have a Zacks
Rank #3 (Hold). Other stocks from the sector that are presently
performing well include
Erickson Air-Crane Inc.
) with a Zacks Rank #1 (Strong Buy).