General Dynamics Awarded $309 Million for Sub Work
On Friday, the U.S. Department of Defense announced it has awarded General Dynamics' Electric Boat Corp. subsidiary a $307.9 million "undefinitized" contract modification to a previously awarded contract. The funds are to be used to purchase long-lead-time materials needed for construction of three Virginia-class nuclear fast attack submarines: SSN 792, scheduled for procurement in 2014, and SSN 793 and SSN 794, both scheduled for procurement in 2015. (Note that the years in question refer to when Congress will officially procure money to pay for the subs, not the years they will enter service.)
Purchasing of the materials in question is expected to be complete by December 2013, but dates for the actual construction of the submarines have not yet been established.
Shares of General Dynamics closed down 1.6% ahead of the announcement on Friday, at $67.88.
The article General Dynamics Awarded $309 Million for Sub Work originally appeared on Fool.com.Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of General Dynamics. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.