General Dynamics Corp. (GD) has received a U.S. Army contract worth $253 million to provide contractor logistics support for the Stryker family of combat vehicles. Logistics support, vehicle resets and upgrades are a continuing area of General Dynamics’ combat systems-related business. The U.S. Army TACOM Lifecycle Management Command awarded the contract to General Dynamics Land Systems, a business unit of General Dynamics.
General Dynamics will provide support to U.S. Army Stryker Brigade Combat Teams in the United States and overseas by supplying spare parts, managing a spare-parts warehouse, worldwide distribution of repair parts and completing maintenance services on the Stryker vehicle fleet. Work will be performed by existing General Dynamics employees in Alaska, Hawaii, Michigan, Pennsylvania, Texas, Washington, and overseas in Afghanistan, Germany, Iraq and Kuwait.
General Dynamics, headquartered in Falls Church, VA, is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. The company operates through four business segments − Information Systems & Technology, Combat Systems, Marine Systems, and Aerospace. Its major competitors are Lockheed Martin Corp. (LMT), Raytheon Co. (RTN) and Force Protection Inc. (FRPT).
General Dynamics is a well-run company that is likely to continue to deliver on expectations driven by strong revenue growth, margin expansion and cash flow generation. Strong defense outlays should further improve the company’s outlook for shareholders while an increasing funded backlog and an improving balance sheet are additional positive factors.
The Zacks Consensus Estimate on the company’s earnings for the first quarter is currently pegged at $1.58 per share, and has not seen any change on either side in recent times.
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