GE Unit to Boost Operations in Vandalia With New Contract

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GE aviation - a unit of General Electric CompanyGE - recently announced that it secured a contract to source aircraft parts to boost its aerospace manufacturing operations in Vandalia.

At its Vandalia site, the company has secured a $11.7 million contract, producing alternating generators for F/A-18 aircraft for the U.S. Navy. Per the Department of Defense, GE Aviation had inked a five-year ordering agreement with the Defense Logistics Agency Aviation based in Philadelphia. This two-year project is part of a five-year ordering agreement.

GE Aviation Vandalia office has 350 employees and makes electric power generators and related systems for military and civilian aircraft. These generators are used to supply electrical energy for the avionics equipment in aircraft. It has also secured number of Navy contracts. The company has as three plants in the region with 1,300 employees.

GE Aviation, has 44,600 employees worldwide at 85 sites. These include 47 facilities in the United States, employing 25,000 workers. It has an industrial backlog of over $150 billion. Revenues from this segment remained flat at $6,532 million, largely due to higher services revenues in the second quarter.

General Electric has underperformed the industry owing to macroeconomic challenges and fluctuations in currency exchanges with an average year-to-date loss of 22.5% compared with decline of 3.7% for the latter. Although General Electric is taking prudent steps to limit its financial exposure by divesting GE Capital assets, it is still susceptible to various market risks.

General Electric currently has a Zacks Rank #5 (Strong Sell). Better-ranked stocks in the industry include Honeywell International Inc. HON Syntel, Inc. SYNT and ManTech International Corporation MANT . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Honeywell has a long-term earnings growth expectation of 9.5%. It has a positive earnings surprise history with an average of 2% for the trailing four quarters, beating estimates thrice.

Syntel has long-term earnings growth expectations of 9.3%. It is currently trading at a forward P/E of 10.92x.

ManTech has long-term earnings growth expectations of 8%. It is currently trading at a forward P/E of 25.24x.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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