GD to Incorporate APS in LAVIII - Analyst Blog

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General Dynamics Corporation 's ( GD ) business division General Dynamics Land Systems is working on the development of the first North American combat vehicle equipped with an Active Protection System ("APS").

The APS feature boosts crew protection, survivability and provides situational awareness by intercepting and beating threats against man-portable weapons before reaching the vehicle. This game-changing technology is one of a kind that overcomes threats without any damage to vehicle mobility and transportability.

General Dynamics recently completed a Critical Design Review of the APS project and intends to fully integrate APS on a Light Armored Vehicle III (LAVIII). The company is a pioneer in the field of engineering capabilities and has been associated with the development of APS technology for more than 20 years.

The company is speeding up its efforts to fast bring this lifesaving technology to its customers. Lately General Dynamics has been involved in developing varied technologies to help the U.S. Army to ward off threats.

Recently, it introduced a smaller, more-capable Airborne Acoustic Processing System known as VENOM which influences commercial-level advances in hardware in order to maximize the detection of submerged threats in deep and coastal waters.

With a foreign client list that includes countries like Australia, Canada, U.K., Latin America and the Arab nations, we believe the advancement of this technology will bode well with the company's business. We believe General Dynamics' strong presence in the international market will to some extent counter the lower domestic contract flows.

Further, solid bookings will continue to provide sizeable returns to the company. At the end of the first quarter its backlog stood at $48.5 billion.

Nevertheless, the continued cutbacks in defense budget would keep on posing challenges to General Dynamics' growth prospects. Currently, the company carries a Zacks Rank #3 (Hold).

However, other U.S. defense operators performing well are Zacks Rank #2 (Buy) Northrop Grumman Corporation ( NOC ) and B/E Aerospace, Inc. ( BEAV ).  Also, to look for is Zacks Rank #1 (Strong Buy) Erickson Air-Crane Incorporated ( EAC ).

Based in Falls Church, VA, General Dynamics Corporation, an aerospace and defense company, provides business aviation; combat vehicles, weapons systems, and munitions; military and commercial shipbuilding; and communications and information technology products and services worldwide.



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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BEAV , EAC , GD , NOC

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