General Dynamics Corporation
) 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").
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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
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
B/E Aerospace, Inc.
). Also, to look for is Zacks Rank #1 (Strong Buy)
Erickson Air-Crane Incorporated
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.