General Dynamics (GD) Stock Gains on U.S. Navy Contract
NEW YORK (TheStreet) -- General Dynamics (GD) - Get Report stock is up 1.52% to $141.35 in afternoon trading on Friday after the San Diego-based aerospace and defense company gained a contract with the U.S. Navy to build six ships. Terms were not disclosed.
General Dynamics will design and construct the next generation of fleet oilers that will have the capacity to transport 156,000 barrels of oil to the Navy's surface ships at sea.
Construction on the first ship will begin immediately since the program is being funded with the fiscal 2016 budget. The Navy will procure funds for the second ship in fiscal 2017 and the remaining funds in fiscal 2018.
"We are pleased to be building the next generation of oilers and participating in the future design efforts of the LX(R), two very important ship programs for the fleet," Fred Harris, president of General Dynamics NASSCO and Bath Iron Works, said in a statement. "With this award, we will now proceed with engineering and design work."
Separately, General Dynamics has a "buy" rating and a letter grade of A- at TheStreet Ratings because of the company's earnings per share growth, increase in net income, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
You can view the full analysis from the report here: GD
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