Huntington Ingalls, General Dynamics Win U.S. Navy Orders
June 3, 2013
Huntington Ingalls Industries Inc (HII.N) beat out General Dynamics Corp (GD.N) for a larger share of a $6.1 billion U.S. Navy order for nine new DDG 51 destroyers, scoring a $3.33 billion deal for five ships that carries a 14 percent profit.
The Defense Department and the Navy announced the 10-year contract with Huntington Ingalls, and a separate $2.84 billion deal with General Dynamics for four new warships, after the close of business on Monday.
General Dynamics also got an option for an additional ship, which would bring the value of the company's contract to $3.53 billion, if exercised, the Defense Department said.
The Navy said it planned to buy the 10th ship as part of its spending plan for fiscal years 2013 through 2017, but needed to resolve funding shortfalls resulting from mandatory across-the-board spending cuts before signing that deal.