General Dynamics Corporation
) marine business wing Bath Iron Works clinched an $18.0 million
contract for the modification of the first DDG-1000 Zumwalt class
guided missile destroyer. The production of the first next
generation DDG-1000 class destroyer is slated to be completed in
The contract is an extension of the original $3.1 billion
maintenance and support deal that the company received in 2008.
The contract will enable General Dynamics to continue lending its
expertise and resources for supporting the building and
maintenance of the vessel.
The complex body design of the Zumwalt destroyers present
challenges which the company needs to study and incorporate in
their technological capabilities thereby making the process
easier for General Dynamics to construct the next set of
General Dynamics has received a string of such maintenance and
support contracts beginning 2013. In the first two months of the
year, the company received four back-to-back navy contracts
totaling $321.5 million. These include General Dynamics Electric
Boat seizing modification contracts for the USS Mississippi and
USS Hartford as well as for the Virginia Class Submarines.
In addition to this the subsidiary also recently received a
submarine safety and maintenance contract.
General Dynamics has a long-standing association with the U.S.
Department of Navy. Moreover, the company's order backlog at the
end of fourth-quarter 2012 was a healthy $17.1 billion.
Futhermore, its diversified business operations also helps to
keep the growth rate stable.
However, the threat of U.S. defense budget cutbacks is
expected to deter near-term development prospects. Presently,
General Dynamics carries a Zacks Rank #3 (Hold).
Other stocks in the defense and aerospace domain we currently
prefer are Zacks Ranked #2 (Buy)
Lockheed Martin Corp.
The Boeing Company
). Another Zacks Ranked #2 stock
Alliant Techsystems Inc.
) is also worth a look.
Based in Falls Church, VA, General Dynamics, engages in
mission-critical information systems and technologies; land and
expeditionary combat vehicles, armaments and munitions;
shipbuilding and marine systems; and business aviation.
ALLIANT TECHSYS (ATK): Free Stock Analysis
BOEING CO (BA): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
To read this article on Zacks.com click here.