General Dynamics secures $17.65 billion contract

mgnonline.com
mgnonline.com

GROTON, Conn. (AP) – General Dynamics says it has secured a $17.65 billion contract to build submarines for the U.S. Navy.

The company said Monday that its subsidiary Electric Boat will be responsible for building 10 additional Virginia-class submarines as part of the agreement. It plans to build two ships per year for the next five years with the help of its partner Newport News Shipbuilding, a unit of Huntington Ingalls Industries.

Construction of the first submarine will begin May 1.

Electric Boat and Newport News Shipbuilding already have delivered 10 of these submarines to the Navy, and eight additional submarines are under construction.

Shares of General Dynamics Corp., based in Falls Church, Va., closed at $107.39, down $1.62.

Shares of Huntington Ingalls, based in Newport News, Va., closed at $99.08, down $1.48.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s