General Dynamics Land Systems, a unit of General
Dynamics Corp ( GD ), has received a
contract worth $25.7 million from the U.S. Navy for the production
of eight MK46 30mm Naval Weapon Systems that will be employed on
San Antonio-class (LPD-17) ships and the Littoral Combat Ship
MK46 systems are the primary deck gun for LPD-17 ships and act as
the secondary gun battery for Littoral Combat Ships. Since 2005,
the company has delivered 30 MK46 systems to the Navy.
The MK46 30mm Naval Weapon System is a fully stabilized weapon
system that can be used 24x7 in all weather conditions. The
system's open architecture software supports individual as well as
integrated variants for multiple uses and maximum flexibility. It
is one of the most cost-effective medium-caliber weapon systems.
Due to its lightweight and compact size, the system is best suited
for numerous anti-surface and anti-air defense applications.
Task for the contract will be performed by the existing workforce
at General Dynamics Land Systems' facilities in Woodbridge, VA;
Tallahassee, FL; Lima, OH; Westminster, MD; Sterling Heights, MI;
and Scranton, PA. The company expects to begin deliveries in Sep
In January this year, General Dynamics Land Systems received a
contract for 24 Light Armored Vehicles from the Colombian Ministry
of National Defense. General Dynamics Land Systems is a subsidiary
of Combat Systems.
Backlog at Combat Systems at the end of the fourth quarter of
2012 was $8.7 billion, down from $11.4 billion in the year-ago
period. However, we believe the continuous flow of contracts would
likely improve the situation in the first quarter of 2013.
The company is expected to release its first quarter 2013 earnings
on Apr 24, 2013. The Zacks Consensus Estimates for the first
quarter of 2013 is currently at $1.59 per share.
Based in Falls Church, VA, General Dynamics Corporation is engaged
in mission-critical information systems and technologies; land and
expeditionary combat vehicles, armaments and munitions;
shipbuilding and marine systems; and business aviation. General
Dynamics' revenue exposure is spread over a broad portfolio of
products and services that will keep the overall growth momentum
However, uncertainty related to the defense budget and U.S debt
situation remain an overhang for the company. The company presently
retains a short-term Zacks Rank #3 (Hold).BOEING CO (BA): Free Stock Analysis ReportGENL DYNAMICS (GD): Free Stock Analysis ReportLOCKHEED MARTIN (LMT): Free Stock Analysis
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Other stocks worth considering are The Boeing
Company ( BA
), Lockheed Martin Corporation ( LMT ) and
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Rank #2 (Buy).