General Dynamics Subsidiary, US Navy Agree to $2.5B Ship Options Deal

| About: General Dynamics (GD)

General Dynamics' shipbuilding subsidiary NASSCO announced Thursday that it reached an agreement with the U.S. Navy for options to build five additional T-AKE dry cargo ammunitions ships, in a deal valued at approximately $2.5B, if all options are exercised. GD-T-AKE-ship General Dynamics has received contracts to build nine T-AKE ships since October 2001 and has already delivered three, with a fourth scheduled for delivery in November. The new options deal has NASSCO delivering the fourteenth T-AKE ship in Q4 2014. Shares of General Dynamics lost 0.6% to $77.67 on Thursday.

Sources: Press release, MarketWatch
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