Aerospace and defense operator
General Dynamics Corporation
) announced that its unit Armament and Technical Products received
a $6.9 million modification contract from the U.S. Navy.
Per the contract, the company will carry out production of
important components of MK82 gun and guided missile directors and
MK200 director controllers for Aegis Combat System
The total value of the illuminator contract after modifications
currently stands at $29.5 million. The initial contract to produce
the illuminators was awarded in October 2010 and the successful use
of which prompted the Navy to follow up with another order in March
The illuminator components are expected to be delivered by the
first half of 2013 and will be installed aboard ships built under
the restart of the DDG 51 shipbuilding program. These components
play a critical part in the Aegis Combat system. The director
positions the fire control system antenna to illuminate the target
while director controller MK 200 generates the drive signals that
position the director.
General Dynamics Armament and Technical Products is part of
General Dynamics' Combat System group. In the first quarter of
2012, Combat System reported revenues of $1.91 billion, down 2.3%
from the year-earlier quarter. During the quarter, the segment
received new orders worth $130 million from U.K. Ministry of
Defense and $75 million from the U.S. Army.
General Dynamics expects earnings per share for in 2012 to be in
the band of $7.10 to $7.20. The Zacks Consensus Estimate of $7.18
is on the higher end of the guidance.
General Dynamics currently retains a Zacks #3 Rank (short-term
Hold rating). Some of its main competitors
Lockheed Martin Corporation
) also carry Zacks # 3 Ranks.
Based in Falls Church, Virginia, 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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