U.S. Navy Awards General Dynamics $150 Million Contract Modification for SSGN Work
GROTON, Conn. – The U.S. Navy has awarded General Dynamics Electric Boat a $150 million contract modification to convert the USS Michigan (SSBN-727) from a Trident ballistic-missile submarine to a Trident SSGN, a multimission submarine optimized for conventional tactical strike and special-operations support. The modification includes options for the conversion of USS Georgia from SSBN-729 to SSGN-729 which, if exercised, would be worth an additional $177 million. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).
This award modifies a five-year, $1 billion contract announced in September 2002 for design and related support work to convert the first four Trident ballistic-missile submarines to an SSGN configuration. If all options are exercised and funded, the contract will be worth a total of $1.3 billion.
Under the terms of this modification, Electric Boat will convert the USS Michigan at Puget Sound Naval Shipyard in Washington concurrent with the ship’s Engineered Refueling Overhaul. Work will be performed in Puget Sound (67 percent), Quonset Point, R.I. (23 percent) and Groton (10 percent), and is expected to be completed by December 2006.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 70,200 people worldwide and had 2004 revenue of $19.2 billion. The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation.
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Any "forward-looking statements" contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release - Friday, January 28, 2005
Press Contact: (860) 433-8556
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