Charlotte, N.C.-based Babcock & Wilcox has won a $366 million contract from the U.S. Navy, the company announced Tuesday.
The contract, which requires B&W to supply nuclear propulsion components to the U.S. Naval Reactors Program for use in nuclear-powered warships, will be performed over the course of the next six years. So while the contact is quite sizable -- amounting to 11% of the company's $3.3 billion in annual revenues -- it will not be performed, or paid for, all in one lump sum.
A full $75 million in work is required immediately, with the balance spaced through contract-completion in 2019. The components in question will be used in nuclear-powered U.S. Navy submarines and aircraft carriers.
The article Babcock & Wilcox Supplies Navy With Nuke Parts originally appeared on Fool.com.
Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.