NEW YORK (TheStreet) -- General Dynamics Corp. (GD) secured a $5.76 billion contract to build armored vehicles for the British army in the largest order for such equipment in 30 years, the Wall Street Journal reports.
The deal was announced today by the British defense ministry, before the U.K. hosts a summit of NATO members in Wales, that will see General Dynamics build 589 Scout Specialist Vehicles. The company had previously won a competition to develop and demonstrate the system, the Journal said.
The U.K. now projects first delivery of the vehicle in 2017 and that they will be ready for deployment in 2020. It replaces vehicles that have been in service 40 years.
Shares of General Dynamics are down -0.37% to $122.21 in pre-market trade.
TheStreet Ratings team rates GENERAL DYNAMICS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL DYNAMICS CORP (GD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels, good cash flow from operations, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."