Tuesday, January 27, 2009

General Dynamics, feds launch $12M grenade deal

By Brendan Lynch

General Dynamics Corp. reports its Armament and Technical Products division has landed $12 million from the U.S. government for the production of grenade launchers.

Under the contract, General Dynamics (NYSE: GD) will produce the MK47 Striker40, a lightweight, portable grenade launcher with sensing, targeting and computer-programming technology.

Production work will be performed at General Dynamics’ facility in Saco, Maine, with program management being shared with the company’s Burlington, Vt., facility.

Last week, the company’s Armament and Technical Products division landed a contract from Korea Aerospace Industries to produce gun systems. Financial terms of the deal were not released. Under the contract, General Dynamics will provide the South Korea-based company with up to 82 A-50 20mm gun systems.

Earlier this month, the division landed $18 million from Raytheon Co. for gun systems to be used by the U.S. Navy ships.

Headquartered in Charlotte, N.C., General Dynamics Armament and Technical Products designs, develops and produces armament systems, defensive armor, aerospace components, mobile shelter systems, and biological and chemical detection systems.

General Dynamics, based in Falls Church, Va., employs approximately 91,200 people worldwide. The defense contractor reported a 2007 net income of $2.1 billion on revenue of $27.2 billion.