General Dynamics Corp.
) won a contract worth $56 million from the U.S. military to
provide support services for Iraqi M1A1 Abrams tanks.
Per this modification contract, General Dynamics will continue
providing logistics and base lifecycle support services to Iraqi
M1A1 Abrams tanks. Work on this latest contract will be performed
by the existing General Dynamics employees in Iraq for 30 days.
Manufactured by a General Dynamics unit, General Dynamics Land
Systems ("GDLS"), the M1A1 Abrams main battle tank is fitted with
armor upgrades and additional mission-critical technologies to
bolster crew situational awareness.
This situational awareness package boosts the M1A1 Abrams tank's
fighting potential. It provides an electronic graphic of the
battlefield to soldiers with icons for friendly and enemy forces.
It also enhances the precision of the tank commander's .50
caliber machine gun.
Based in Falls Church, Va., General Dynamics engages in
mission-critical information systems and technologies; land and
expeditionary combat vehicles, armaments and munitions;
shipbuilding and marine systems; and business aviation.
Earlier this year, General Dynamics Land Systems received a
contract worth $132.7 million from the U.S. Army TACOM Life Cycle
Management Command for the Royal Saudi Land Forces. The contract
calls for the company to produce and supply 69 Saudi M1A2 Abrams
tanks to the Kingdom of Saudi Arabia. This contract is part of a
plan by the Kingdom of Saudi Arabia to upgrade its fleet of
tanks. Basically, the company will be supplying the improved
General Dynamics has been upgrading the kingdom's fleet of M1A1
and M1A2 tanks to the M1A2S configuration preferred by the
Saudis. M1A2 SEP V2 is the most advanced digital tank with
improved color displays, day and night thermal sights, commander
remote operated weapon station ("CROWS II"), a Thermal Management
System ("TMS") and a tank-infantry phone. The M1A2S conversion
increases the efficiency and capability of the tank.
Major international militaries from countries like Egypt, Kuwait,
Saudi Arabia, Australia and Iraq, are the customers of Abrams
tanks. General Dynamics' Abrams tanks offer the troops with a
proven and decisive edge. Survivability, mobility, adaptability
and maintainability are important features of the tank. With
these features, Abrams tanks are formidable and will dominate the
General Dynamics presently retains a Zacks Rank #3 (Hold). The
ongoing sequester hangs as a major threat to General Dynamics as
well as other defense majors.
Among the stocks worth considering in the space are
Lockheed Martin Corp.
Northrop Grumman Corp.
Huntington Ingalls Industries, Inc.
), all with a Zacks Rank #2 (Buy).
GENL DYNAMICS (GD): Free Stock Analysis
HUNTINGTON INGL (HII): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
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