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. 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
Commentary: Large-Cap Defense Stocks Poised For Strong Movement • Defense Stocks: P/E Isn't the Only Consideration • General Dynamics Wins Final Phase of $5 Billion Wireless Network
Stocks/ETFs to watch: GD. ETFs: ITA, PPA
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