Jacksonville Business Journal
, Lynn, Massachusetts-based
General Electric Company
) announced that it has won an award from the U.S. Naval Supply
Systems Command Weapon Systems Support, Philadelphia, for $265
million. The new contract, spanning three years, involves
repairs, replacement and program support for 35 F404 engine (F/A
18 A-D) aircraft components.
The contract will extend through the end of December 2015, and
would be executed at Fleet Readiness Center Southeast,
Jacksonville. Around 3,000 civilians, 1,000 military personnel
and 1,000 contractors are employed in Fleet Readiness Center
Working capital funds, which have been allocated by the U.S.
Department of Defense - Navy will not expire in the fiscal 2012.
U.S. Defense will have no financial obligation toward General
Electric at the time of receiving the contract. The company
competitively procured this contract among the six other
Fleet Readiness Center, based in Naval Air Station
Jacksonville, is a hub for a number of GE defense contracts. In
2008, General Electric won a 12-year contract worth $300 million
to provide F-414 engines to the Australian Department of Defense
and will be eventually overhauled in Jacksonville. It was the
first overhaul contract between GE and Australia.
GE Aviation, a division of GE is the world's leading producer
of large and small jet engines for commercial and military
aircrafts. In fiscal 2011, this division contributed 13% of the
total revenue for General Electric. It also supplies
aircraft-derived engines for marine applications and provides
United Technologies Corporation
), a major competitor of General Electric, also announced a
string of contract wins over the past few quarters. On the same
day of this contract win for General Electric, United
Technologies Corporation was awarded with three cost-sharing
contracts from the U.S. Department of Energy. General Electric
currently holds a short-term Zacks #4 Rank, which implies a Sell
rating on the stock.
GENL ELECTRIC (GE): Free Stock Analysis
UTD TECHS CORP (UTX): Free Stock Analysis
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