General Dynamics Sets High for the Year on Pentagon Spending Approvals

Monday, October 02, 2006
Shares in military contractor General Dynamics Corp. rose to a fresh 52-week high Monday after Congress approved on Friday a supplemental spending bill with money earmarked for the company's main products. Two analysts reiterated bullish forecasts on Monday, citing the budget approvals, helping General Dynamics shares rise $1.75, or 2.4 percent, to $73.42 in recent trading on the New York Stock Exchange. The stock reached as high as $73.59 earlier in the session, eclipsing its pervious year high of $72.92.

On Friday, Congress passed an additional $70 billion spending for Iraq and Afghanistan as part of a record Pentagon budget of $448 billion, which included new funding for General Dynamics' M-1 Abrams tank and Stryker armored vehicle programs. Bank of America analyst Robert Stallard said General Dynamics, as part of the supplemental funding, will get $1.1 billion for its Abrams tank program, $82.1 million to replace Stryker vehicles destroyed in the wars and $25 million for vehicle armor. Stallard also said the company's business jet unit, Gulfstream, should benefit from strong international demand.

He raised estimates for 2006 earnings to $4.20 per share from $4.17 and lifted his share-price target to $80 from $75. Prudential Equity analyst Byron Callan boosted his 2008 earnings targets, citing a potential sale of M-1 tanks and Strykers to Saudi Arabia in addition to the approved Pentagon spending on General Dynamics' products.

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Aberdeen Pupils Peek into Subsea Oil & Gas Technology

Pupils at an Aberdeen primary school were given a rare insight into the depths of the oil and gas industry’s subsea sector after getting to sit in the driving

AVEVA, DNV GL's Sesam Integration Cuts Cost

Integration of Aveva and DNV GL's Sesam Reduces Costs in Maritime and Offshore Engineering. Engineers designing ship hulls and offshore floaters can now save

FORAN for Pertamina's Future Ships

FORAN has been chosen by state-owned company PERTAMINA to review the design of their future oil product carrier ships, under construction in a shipyard with the FORAN System.

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3130 sec (3 req/sec)