General Dynamics Corporation
) won a contract from the Department of Defense (DoD) and the
U.S. Navy for four new ships. The contract is worth $2.84
The latest is a fixed-price incentive firm target contract that
calls for General Dynamics to design and construct four DDG 51
class ships, one in fiscal year 2013 and one each in fiscal years
2015-2017. The deal also has an option for a fifth ship that
would bring the total value to $3.53 billion.
Huntington Ingalls Industries
) also received a fixed-price incentive 10-year sizeable contract
worth $3.33 billion from the U.S. Navy for the construction of
five DDG 51s. The contract value can go up to $3.39 billion if
certain options are implemented. With its five-warship contract,
Huntington seems to have beaten GD at the post.
A General Dynamics affiliate, General Dynamics Bath Iron Works
and Huntington Ingalls are the only manufacturers of the Arleigh
Burke (DDG 51) class of AEGIS destroyers. Bath Iron Works
occupies the leading position in designing and building DDG 51
class of AEGIS destroyers as well as the multi-mission DDG-1000
Last month, General Dynamics Bath Iron Works performed the keel
laying ceremony of DDG 1001, the second ship amongst the planned
three-ship Zumwalt class of guided-missile destroyers.
The DDG-1000 Zumwalt-class destroyer is the U.S. Navy's
next-generation, guided-missile naval destroyer. Going forward,
these destroyers will help in creating a new generation of
advanced multi-mission surface combat ships. These ships will
consist of a low radar profile, an integrated power system and a
total ship computing environment infrastructure.
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General Dynamics is engaged in mission-critical information
systems and technologies; land and expeditionary combat vehicles,
armaments and munitions; shipbuilding and marine systems; and
business aviation. The company is equipped to build
nuclear-powered submarines in the U.S. Its revenue exposure is
spread over a broad portfolio of products and services that will
keep the overall growth momentum steady.
However, like other defense majors,
Lockheed Martin Corporation
Northrop Grumman Corporation
), the prospects of the company are tied to the U.S. defense
budget. The company presently retains a short-term Zacks Rank #3