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 August 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Kurdish Crude Oil Tankships: End-Game Still in Doubt

After a legal show-down in Texas this week, the outlook for a handful of tankers holding some $300 million worth of Kurdish oil is not looking good. Seemingly

Greek Warship Evacuates Libya Personnel

Greece safely evacuated embassy staff and more than one hundred Chinese and European nationals from Libya early on Friday with a navy frigate sailing back to the Greek port of Piraeus,

Children’s Day at Gazprom Transgaz Saratov

On May 31 and June 1, 2014 . Over two thousand children from the Saratov, Tambov and Penza Regions took part in sports competitions, environmental quizzes and

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1612 sec (6 req/sec)