(By Balaseshan) General Dynamics Corp. (NYSE:GD), an aerospace and defense company, said its subsidiary has received a contract modification worth $459 million from the U.S. Navy for nuclear-submarine support work.
General Dynamics Electric Boat will provide planning yard work and engineering and technical support for nuclear submarines. Initially awarded in October 2010, the contract has a potential value of about $1.2 billion over three years if all options are exercised.
Under the terms of this award, Electric Boat will provide design, engineering and logistics support and research and development activities for active U.S. submarines and submersibles.
Electric Boat will also provide information services and support submarine maintenance and modernization activities, training and affordability and cost reduction efforts.
This work will engage Electric Boat's engineering and design organization, which comprises more than 4,000 employees working on all facets of the submarine life cycle.
General Dynamics offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; military and commercial shipbuilding, and communications and information technology. It operates through four business groups: aerospace, combat systems, marine systems and information systems and technology.
GD is trading up 1.72 percent at $67.30 on Tuesday. The stock has been trading between $60.35 and $74.54 for the past 52 weeks.