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Friday, December 15, 2017

General Dynamics Corp News

Northrop Grumman Complies With Antitrust Regarding NNS Purchase

Defense contractor Northrop Grumman Corp. on Monday said it notified the U.S. Department of Justice and the Federal Trade Commission of its intent to acquire Newport News Shipbuilding Inc. in compliance with antitrust regulations. Northrop placed an unsolicited bid for Newport News, maker of the U.S. Navy's nuclear-powered aircraft carriers, earlier this month, challenging a planned $2.1 billion merger of Newport and General Dynamics Corp. Both Northrop and General Dynamics have said they filed pre-merger notifications in compliance with the Hart-Scott-Rodino antitrust improvements act.

Navy Requests Changes to General Dynamics Deal

The U.S. Navy has reportedly asked General Dynamics Corp to switch to a fixed-price contract for its shore-hugging Littoral Combat Ships or risk losing at least part of the deal. The Navy asked General Dynamics to restructure the deal due to cost growth ranging from 50 percent to 75 percent on the company's lead ship. General Dynamics cannot start work on its second LCS ship until a deal is reached to set a ceiling on the construction price, the Navy said. (Source: Reuters)

General Dynamics Gets $270m Sub Procurement Pact

General Dynamics Electric Boat, a subsidiary of General Dynamics Corp., said it received a $270m pact modification from the U.S. Navy to buy long lead time material for the fiscal 2009 Virginia-class submarine SSN-784. The contract provides funding for steam and electric plant components, as well as mechanical and electrical systems components for the construction of the SSN-784 in fiscal 2009. General Dynamics said the work is expected to be completed by July 2011. The contract being modified was originally awarded in August 2003 and will be worth $8.8m, the company said.

General Dynamics Bets $71.9m Navy Deal

The Navy on Wednesday said it awarded a $71.9m contract boost to a unit of General Dynamics Corp. for repairs and testing on a submarine. Groton, Conn.-based Electric Boat Corp. will provide repairs, changes, testing and maintenance on the USS Virginia, a nuclear-powered attack submarine. The company is expected to perform the work in Groton, Conn. and Quonset Point, R.I. through March 2007. Source: Business Week

Electric Boat Awarded Another Sub-Repair Contract

Electric Boat Corp. was awarded a $6.7 million submarine contract with the U.S. Navy. The Supervisor of Shipbuilding Conversion and Repair, based in Groton, Conn., commissioned the work. Electric Boat is a business unit of General Dynamics Corp., a defense contractor headquartered in Falls Church, Va. There are five General Dynamics business units operating in New England, including Bath Iron Works in Bath, Maine and General Dynamics Armament and Technical Products based in Burlington, Vt. General Dynamics employs 72,200 people worldwide and specializes in combat systems, munitions and shipbuilding. General Dynamics reported 2006 net sales of $24 billion. Source: MHT

NNS Board Approves General Dynamics Plan

Newport News Shipbuilding Inc.'s board voted to back the $2.1 billion takeover offer from fellow defense contractor General Dynamics Corp. over a rival offer from Northrop Grumman Corp. Newport News, a warship builder, said in a statement its board voted unanimously to recommend the company go with General Dynamics' offer after determining it did not have enough information regarding the positions of federal antitrust regulators and defense officials to take a position on the Northrop bid. Newport News and General Dynamics announced plans to combine in April. Northrop countered with its own offer for Newport News in May. Though structured differently, Northrop's offer is about equal to that of General Dynamics. - (Reuters)

Electric Boat Gets $7M Sub Contract

Electric Boat has won a $7m contact with the Navy for nuclear submarine maintenance. The Navy is calling on Electric Boat Corp., to make repairs and upgrades through July 2008, according to the U.S. Department of Defense. The Supervisor of Shipbuilding, Conversion and Repair, also based in Groton, is the contractor. Electric Boat is a business unit of General Dynamics Corp., which is a defense contractor headquartered in Falls Church, Va. Source: MHT

Northrop Grumman Outlook Downgraded

Goldman Sachs lowered its rating on U.S. military contractor Northrop Grumman Corp. to market perform from outperform. In a report, analyst Howard Rubel said the downgrade stemmed from potential dilution and distraction over a bid for Newport News Shipbuilding Inc. He said a combination between Northrop and Newport News may not produce the benefits for Northrop or the U.S. Navy that a General Dynamics Corp.-Newport News deal would. General Dynamics and Northrop have competing bids for the shipbuilder. General Dynamics agreed to buy Newport News for $2.1 billion in cash, while Northrop is offering $2.1 billion mostly in stock. Northrop…

GD to Build 'Sea Robots'

General Dynamics Corp. (GD) won a $8.5 million contract to build two sea robots for the U.S. Navy. The unmanned surface vehicles will be part of an antisubmarine warfare package for the Littoral Combat Ship, a new U.S. Navy vessel designed to chase down enemy forces in coastal waters. General Dynamics is building some of the new vessels alongside a competing design built by Lockheed Martin Corp. (LMT). The sea robots will carry a variety of sensors and will have the ability to operate autonomously. These sensors include sonar, listening devices and towed arrays of information collectors, the company said in a press release. General Dynamics said its contract covers up to four of the robots. If all options are exercised, the deal could be worth $11.3 million.

DRS Technologies Gets Navy Contracts

Defense contractor DRS Technologies Inc. received contracts worth $18.3m to manufacture parts to be used in Navy ships. The contracts, awarded by a subsidiary of defense contractor General Dynamics Corp., are for fan coil assemblies and units to be used in air conditioning systems on guided-missile destroyers. Work for these orders will be performed by the company's DRS Marlo Coil unit in High Ridge, Mo. DRS said it plans to begin work on the contracts in 2008 and continue through 2016. (Source: MSN)

General Dynamics Awarded $661M Contract

U.S. military shipbuilder General Dynamics Corp. said the Navy had awarded it an additional $661 million to complete the construction of the next two ships in the DDG 51 AEGIS Class of naval destroyers. The Falls Church, Va.-based company said in the statement that the agreement is a modification to its 1998-2001 DDG 51 Class multi-year contract with the Naval Sea Systems Command. The company said its Bath Iron Works unit would begin construction of the DDG 99 and DDG 101 in 2001, with delivery anticipated in 2006.

General Dynamics Gets $661M Contract

U.S. military shipbuilder General Dynamics Corp. said the Navy had awarded it an additional $661 million to complete the construction of the next two ships in the DDG 51 AEGIS Class of naval destroyers. The Falls Church, Va.-based company said in the statement that the agreement is a modification to its 1998-2001 DDG 51 Class multi-year contract with the Naval Sea Systems Command. The company said its Bath Iron Works unit would begin construction of the DDG 99 and DDG 101 in 2001, with delivery anticipated in 2006.

General Dynamics Sees Good Year Ahead

According to a Dec. 2 report from Reuters, General Dynamics Corp (GD.N) expects flat defense spending in coming years, or possibly small declines, but does not foresee the kind of “precipitous" declines seen in early downturns. (Source: Reuters)  

Austal Marks Start LCS Construction

The AP has reported that Austal USA marked the start of a warship project with a keel-laying ceremony at its Mobile shipyard. A massive aluminum keel — the spine on which the ship will be built — was already in place when guests including government officials and most of Austal's 430 employees arrived. Austal is the shipbuilder for a team led by Maine-based Bath Iron Works, a subsidiary of General Dynamics Corp., which in October won the $223 million contract to build a version of the Navy's newest vessel — the littoral combat ship, or LCS.

GD Exec to Address Maine Maritime Graduates

Michael W. Toner, executive vice president, marine systems, General Dynamics Corporation, and president of General Dynamics Electric Boat, Groton, Conn., will address the graduating class at Maine Maritime Academy's 60th Commencement on May 10, 2003. Toner, who will receive an honorary doctorate from the college at the ceremony, has been with Electric Boat for nearly 40 years. Earlier this year, he was named executive vice president, marine systems, of General Dynamics Corp. Marine systems - a position that encompasses all of the corporation's shipbuilding and marine-service operations. In addition, Toner remains president of General Dynamics Electric Boat - a position he has held for more than three years.

Northrop Grumman Extends Again NNS Tender Offer

U.S. defense contractor Northrop Grumman Corp. on Thursday said it extended again its tender offer for the shares of Newport News Shipbuilding, as the antitrust enforcers weighed the proposed $2.1 billion takeover. Los Angeles-based Northrop, which is competing with rival General Dynamics Corp. for control of Newport News, said it extended its tender offer for shares of the warship builder to July 19 at midnight EDT from the prior deadline of July 5. About 2.84 million shares, or nine percent, of Newport News' common stock had been tendered as of 5:00 p.m. EDT on July 5, Northrop said. Falls Church, Va.-based General Dynamics recently said about 20.3 million Newport shares, more than the majority of those outstanding, had been tendered in connection with its bid.

General Dynamics Wins $13.7M Contract

On August 31, General Dynamics Corp. announced that its subsidiary General Dynamic Boat has received a contract worth $13.7m from the U.S. Navy. As per the agreement, Electric Boat would provide design agent, planning yard, engineering and technical support for nuclear submarines and would provide design and installation activities for shore-support facilities. The company said that 94 percent of the work will be performed at Groton; 3 percent at Bangor, Wash.; and 3 percent at Kings Bay. (Source: www.tradingmarkets.com)

U.S. Navy, General Dynamics Continue Talks

General Dynamics Corp. (GD.N: Quote, Profile, Research) and the U.S. Navy recently met to discuss switching to a fixed-price contract for the company's shore-hugging Littoral Combat Ships (LCS) after the program was between 50 percent and 75 percent over budget, according to a Reuters report. The Navy, which wants to eventually build 55 of the new ships, hopes to resolve the matter by Oct. 19. The sides began talks last week. Two sources familiar with the talks said they were focused in part on General Dynamics' concern about limiting its liability under the fixed-price agreement if requirements for the program changed in the future. [Source: Reuters]

General Dynamics to Build Third Mobile Landing Platform Ship

MLP Ship: Credit NASSCO

Third Mobile Landing Platform Ship for USN ordered from General Dynamics. According to Reuters, General Dynamics Corp has won a $360 million contract to build a third 765-foot-long Mobile Landing Platform ship - a kind of "pier at sea" - for the U.S. Navy. NASSCO informs that once delivered to the fleet, MLP ships will join Maritime Prepositioning Force squadrons that are strategically located around the world to enable rapid response in a crisis. MLP vessels will change the way the Maritime Prepositioning Force operates…

General Dynamics Awarded 'Zumwalt-class' Superstructure Contract

Zumwalt-class under construction: Photo courtesy of USN

US Defense Department, Navy, has awarded General Dynamics Corp. -- Bath Iron Works Corp., Bath, Maine, a $212,000,000 fixed-price incentive (firm target) contract for the design and construction of a steel superstructure (deckhouse and hangar) plus construction of an aft peripheral vertical launching system for the Zumwalt-class destroyer (DDG 1002). Work will be performed in Bath, Maine (80.5 percent), Corona, Calif. (4.1 percent), Coatesville, Pa. (2.6 percent), South Portland…

Rising Steel, Oil Prices Raise LCS Costs

Lockheed Martin Corp. says a double-digit jump in the cost of steel and rising oil prices have influenced the rise in the final price tag of its latest warship for the Navy to more than double the initial estimates. Navy officials last month told lawmakers the service's initial estimate of $220m per ship had ballooned to as much as $550 million, which they blamed on design changes that occurred during construction. While the cost of the first two Littoral combat ships--one each being built by Lockheed Martin and General Dynamics Corp.-- is not allowed to breach a congressional cost cap of $460 million per vessel, the ceiling does not apply to run-ups in inflation.

Northrop Grumman Extends NNS Tender Offer

U.S. defense contractor Northrop Grumman Corp. on Thursday said it has extended its tender offer for the outstanding shares of Newport News Shipbuilding, after the Justice Department requested additional information about the takeover. Los Angeles-based Northrop said it extended its tender offer for Newport News, to July 5 at midnight EDT from the previous June 20 deadline. About 861,000 shares of Newport News common stock had been tendered as of midnight June 20, Northrop said. The company started its exchange offer in May for each of Newport's outstanding shares for $67.50 in cash or stock, moving forward with the hostile bid despite Newport's planned merger with rival General Dynamics Corp.

GD Reports Good Quarter

General Dynamics Corp., maker of nuclear submarines, tanks and destroyers, reported an 11 percent increase in second-quarter profits, meeting Wall Street targets, on gains in its combat systems operations. The company, which is battling rival defense contractor Northrop Grumman Corp. to take over Newport News Shipbuilding Inc., posted net earnings of $227 million, or $1.12 per share, up from $204 million, or $1.01 per share, a year earlier. Analysts had expected a profit of $1.12 per share, with estimates ranging from $1.08 to $1.15, according to tracking firm Thomson Financial/First Call. Sales rose to $2.96 billion from $2.62 billion a year earlier. Cash flow from operations for the second quarter was $208 million.

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

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