GD Gets $49.4M Order for DDG 51 - Analyst Blog
20 Décembre 2012 - 2:15PM
Zacks
Bath Iron Works (“BIW”), a business
wing of General Dynamics Corporation (GD), has
received two contracts worth $49.4 million from the U.S Navy under
the DDG 51 Arleigh Burke-class guided missile destroyer
program.
Per the first contract, General Dynamics will be responsible for
providing lead yard services to the DDG 51 program. The
contract, worth $28.3 million, is a modification pact that follows
a contract initially received by the company earlier in 2012.
The second contract, worth $21.1 million, under the DDG 51 program
was for post-shakedown availability (“PSA”) for USS Michael Murphy
(DDG 112). The total value of the contract is $27.1 million, if all
the options are exercised. Though BIW will remain the prime
contractor, Bath Iron Works has teamed up with BAE Systems, a
subsidiary of BAE Systems plc (BAESY), for this contract. The task
is expected to be completed by August 2013.
DDG 51 Arleigh Burke-class features Aegis combat system, the
vertical launching system, advanced anti-submarine warfare system,
two embarked SH-60 helicopters, advanced anti-aircraft missiles and
Tomahawk anti-ship and land-attack missiles. This makes it the most
powerful surface combatant positioned in sea. DDG 51 multi-mission
guided missile destroyers provide a complete array of
anti-submarine, anti-air and anti-surface capabilities by operating
in support of carrier battle groups, surface action groups,
amphibious groups and replenishment groups.
Bath Iron Works is the lead shipyard and design agent for the DDG
51 Arleigh Burke-class. It has been providing design and technical
assistance for design upgrades and major changes to the two
shipyards that are currently building DDG 51-class destroyers since
1987. Under the Navy's DDG 51 continuation program, BIW is working
on the construction of Rafael Peralta (DDG 115) and Thomas Hudner
(DDG 116). It had received a contract modification worth $663
million for the construction of DDG 116 in February 2012.
This contract proves the company’s capability of providing high
quality support and services anytime for the fleet of DDG 51-class
of ships.
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.
General Dynamics’ revenue exposure is spread over a broad portfolio
of products and services in business aviation; combat vehicles,
weapons systems and munitions; shipbuilding design, repair and
construction; and information systems, technologies and services.
Diversification of revenue through exposure to a number of
uncorrelated markets will keep the overall growth momentum steady.
However, with possibility of a cut in the defense budget, the
company presently retains a short-term Zacks #3 Rank (Hold) that
corresponds with our long-term Neutral recommendation on the
stock.
Some of its major peers are Northrop Grumman
Corporation (NOC) and Lockheed Martin
Corporation (LMT).
GENL DYNAMICS (GD): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
NORTHROP GRUMMN (NOC): Free Stock Analysis Report
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