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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Allcargo Groups Subsidiaries as ECU Worldwide

ECU Line, Econocaribe and China Consolidators undergoes rebranding to build a Global Brand Connect   India’s integrated logistics solution provider Allcargo Logistics

Damen Opens US Office

Damen Shipyards Group has announced the opening of a new branch office in Houston, Texas. This expansion, under the name of Damen North America, meets the increasing

French PM: Aussie Subs to be built in Australia

French Prime Minister Manuel Valls said on Monday he was committed to building all of a new Australian submarine fleet in Australia, apparently contradicting the

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Port Authority Ship Repair Ship Simulators 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: 0.0825 sec (12 req/sec)