Aerospace and defense operator General Dynamics (GD) announced that its unit General Dynamics Armament and Technical Products signed a deal worth $17 million with Boeing Company (BA). As per the contract, General Dynamics’ unit will will produce components and spare parts for Boeing’s C-17 Globemaster III aircraft.
General Dynamics Armament and Technical Products provides a broad range of system solutions for military and commercial applications and has been supplying components for Boeing’s aircraft for the last twenty years. The previous deal with Boeing to supply composite components, worth $20 million was signed on April 7, 2010.
General Dynamics will produce the components from its plants in Marion, Virginia. The production will start from December 2011, and the deliveries will be made within February 2012.
General Dynamics’ Armament and Technical Products have been winning consistent contracts from the defense departments. During September 2010, this unit won a few contracts, the combined value of which was $94 million. On October 1, 2010, this unit won a contract worth $24.9 million from the U.S. Army to produce MK47 advanced lightweight grenade launcher systems.
Armament and Technical Products is a part of General Dynamics’ Combat Systems Group. The Combat Systems division of the General Dynamics contributed 26% to the total revenue during the second quarter of 2010. Total backlog of this division at the end of the second quarter was $12.78 billion out of which $11.07 billion was funded backlog.
General Dynamics currently retains a Zacks #3 Rank (short-term Hold rating). We maintain our long-tern Neutral rating on the stock.
Based in Falls Church, Virginia, General Dynamics along with its units, operates in business aviation, land and expeditionary combat systems, armaments and munitions, shipbuilding and marine systems as well as information systems and technologies.
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