GD to Support Military Hospitals - Analyst Blog
28 Novembre 2012 - 12:00PM
Zacks
General Dynamics Information
Technology, a business unit of General Dynamics
Corporation (GD), was awarded three task orders to provide
initial outfitting and transition (IO&T) services to the U.S.
Army Corps of Engineers, Engineering and Support Center,
Huntsville, Alabama. Under these task orders, General
Dynamics will plan, purchase, deliver and install medical and
information technology equipment and furniture in support of new
military hospitals at Fort Riley, Kansas, and Fort Benning,
Georgia. It will also support new clinics at Camp Carroll and Camp
Humphreys in South Korea. The task orders have a combined
value of $100 million over 28 months.
Under the first task order, General Dynamics will outfit and help
activate the new Irwin Army Community Hospital at Fort Riley.
General Dynamics will relocate and transition a staff of
approximately 1,200 to the new hospital, which will serve thousands
of Army soldiers and their families. This new 555,000 square
foot hospital will include 44 inpatient beds, 4 operating rooms, a
21-bed emergency room and a traumatic brain injury clinic. The
hospital is scheduled to open in May 2014.
Under the second task order, General Dynamics will equip and help
launch the new Martin Army Community Hospital at Fort
Benning. This project will encompass 745,000 square feet with
70 inpatient beds. The hospital is scheduled to open in November
2014 with a staff of more than 1,500.
Under the third task order, General Dynamics will supply outfitting
and transition services for the new Camp Carroll Health and Dental
Clinic and Camp Humphreys Dental Clinic in South Korea. These
projects will include delivery and installation of medical, dental
and IT equipment for two large clinics located in Waegwan and
Pyeongtaek, South Korea. Both facilities are expected to open
by early 2015.
General Dynamics had previously provided similar
healthcare-facility support services to the new Walter Reed
National Military Medical Center in Bethesda, Maryland, and the new
Fort Belvoir Community Hospital in Fort Belvoir, Virginia.
We view General Dynamics as a well-run company that is likely to
continue delivering on expectations, driven by revenue growth,
margin expansion and cash flow generation. Looking forward, key
drivers include a reviving business jet market business and a
stable business for the U.S. military vehicles.
However, we believe that the fortunes of the company are largely
tied to the U.S. defense budget, where the threat of budget cuts is
looming. Also, we have turned slightly cautious about the risks
related to the execution of key projects.
Like its peers, Northrop Grumman Corporation (NOC)
and Lockheed Martin Corporation (LMT), General
Dynamics presently retains a short-term Zacks #3 Rank (Hold) that
corresponds with our long-term Neutral recommendation on the
stock.
Based in Falls Church, Virginia, 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. The company
operates through four segments: Information Systems &
Technology Combat Systems, Marine Systems, and Aerospace.
GENL DYNAMICS (GD): Free Stock Analysis Report
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