General Dynamics Land Systems, Canada, a business unit of
General Dynamics Corporation
), has received a contract for the production of 13 Light Armored
Vehicles (LAV-A2) from U.S. Marine Corps. The contract value is
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Since 2007, the Marine Corps has ordered 253 LAV-A2 vehicles. The
company expects the first delivery in Jun 2014 and the last
delivery in Oct 2014.
General Dynamics Land Systems is the leader in Light Armoured
Vehicle platforms. It offers the forces with the most advanced
technologies combined with combat-proven survivability. The
LAV-A2 is a mobile, survivable and lethal system that conducts a
number of functions, which include security, reconnaissance,
offensive and defensive operations as a part of the Marine
Air-Ground Task Force. The eight-wheeled vehicle operates on both
land and water and provides military with enhanced mobility,
increased firepower and superior protection.
Recently, in January 2013, General Dynamics received a contract
from Colombian Army for 24 Light Armoured Vehicles. Vehicles
under this contract will be the LAV III version with double-V
hull technology and add-on armour that provides crew members with
the latest in protection against mine blasts, IEDs and other
General Dynamics is progressing well with different kinds of
contracts that will boost the company's top and bottom line.
Recently, the company had also received a contract for the
procurement and production of 69 Saudi M1A2S Abrams tanks for
Going forward, key growth drivers for the company include
improving business jet market, stable business of U.S. military
vehicles, and strong cash flow generation. However, we prefer to
remain on the sidelines as future prospects of the company are
tied to the U.S. defense budget. The company presently retains a
short-term Zacks Rank #4 (Sell). We have a long-term Neutral
recommendation on the stock.
Based in Falls Church, Virginia, General Dynamics Corporation
engages in mission-critical information systems and technologies;
land and expeditionary combat vehicles, armaments and munitions;
shipbuilding and marine systems; and business aviation.
Some of its main competitors are
Lockheed Martin Corporation
Huntington Ingalls Industries, Inc.