STERLING HEIGHTS, Mich. - The U.S. Army Contracting Command has awarded General Dynamics Land Systems a $26 million contract to build two Joint Assault Bridge (JAB) prototypes. General Dynamics Land Systems is a business unit of General Dynamics (NYSE: GD).
The Joint Assault Bridge program is a multi-service initiative to replace the existing Armored Vehicle Launched Bridge (AVLB) system that is currently available to U.S. forces. The JAB system will be a fully tracked armored engineering vehicle specifically designed to provide Mobility Augmentation Companies with bridging capabilities allowing military vehicles to cross ravines or gorges in combat. It will provide crew with protection and vehicle survivability equal to the M1A1 Abrams tank fleet and have the speed and mobility to keep pace with the manuever force. The JAB system will launch and recover the Army's hydraulically actuated Military Load Class Scissor Bridge.
Test support packages (TSP) will be delivered along with two JAB prototypes to the Army's Aberdeen Proving Grounds. The contract supports the JAB engineering and manufacturing development phase, and work will be performed in Sterling Heights, Mich., with an estimated completion date of August, 2014.
More information about General Dynamics Land Systems is available at www.gdls.com.
More information about General Dynamics is available at www.generaldynamics.com.
Sterling Heights, Mich. - The U.S. Army TACOM Lifecycle Management Command awarded General Dynamics Land Systems $31 million to begin upgrading 24 M1A1 Abrams main battle tanks and 22 M1A2 System Enhance Package (SEP) Version One (V1) tanks to the M1A2 SEP V2 configuration. General Dynamics Land Systems is a business unit of General Dynamics (NYSE: GD).
The most technologically advanced digital tank available, the M1A2 SEP V2 includes improved color displays, day and night thermal sights, auxiliary power and a tank-infantry phone. The configuration is a digitally connected tank with a state-of-the-art eletronic backbone, powerful computers and an open architecture designed to accept future technologies without the need for significant re-design. The SEP enhancements make the Abrams the most survivable tank in the world and enable it to fight as part of the Joint Force network for decades to come.
The order authorizes the modernization of tanks that have been in the Army's inventory for up to 20 years. Work will be performed in Anniston, Ala; Tallahassee, Fla; Sterling Heights, Mich; Lima, Ohio; and Scranton, Penn., with an estimated completion date of November 30, 2012.
This award maintains the stability of the U.S. combat vehicle industrial base and helps protect critical commercial defense resources. Abrams production helps preserve a strong national industrial base of approximately 882 suppliers, 64 percent of which are small businesses, as well as a strong national defense.
General Dynamics Land Systems is a leading manufacturer of wheeled, tracked and amphibious combat vehicles, offering a spectrum of design, production and lifecycle support to customers worldwide. Its portfolio of vehicle platforms includes the Stryker wheeled combat vehicle, the Abrams main battle tank and the MRAP class of tactical vehicles. The company employes world-class manufacturing and systems-integration processes to develop vehicles designed to meet current and future ground-combat requirements.
More information about General Dynamics is available at www.generaldynamics.com.
General Dynamics Reports Fourth-quarter, Full-year 2011 Performance
• Net cash provided by operating activities totals $2 billion in fourth quarter, $3.2 billion for full year
• Company-wide sales increase over prior periods
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported 2011 fourth-quarter earnings from continuing operations of $603 million, or $1.68 per share on a fully diluted basis, compared to 2010 fourth-quarter earnings from continuing operations of $729 million, or $1.91 per share fully diluted.
Fourth-quarter earnings were impacted by charges taken at the company’s Switzerland-based aircraft-completions business totaling $189 million. The charges comprise a $111 million non-cash impairment of an intangible asset related to the business and $78 million in contract losses.
“Jet Aviation’s aircraft-completions business continued to face lower OEM business-jet volume and delays in several narrow-body and wide-body aircraft which are nearing delivery,” said Jay L. Johnson, chairman and chief executive officer. “We have taken appropriate steps to address these issues.
“The charges taken in our completions business mask an otherwise solid fourth-quarter performance by General Dynamics, marked by excellent cash generation, delivery of the first 12 Gulfstream G650 production aircraft to the final phase of manufacturing, and strong margins in our defense businesses,” Johnson continued.
Revenue and Full-year Earnings
Fourth-quarter 2011 revenue was $9.1 billion, and revenue was $32.7 billion for the full year. Full-year 2011 earnings from continuing operations were $2.55 billion, or $6.94 per share on a fully diluted basis, compared to $2.63 billion and $6.82 per share, respectively, for 2010.
Margins
Company-wide operating margins, which include the impact of the charges in Aerospace, were 10.4 percent for the fourth quarter and 11.7 percent for the full year. These margins reflect the continued strong performance in the company’s defense groups, each of which increased their operating margins in the quarter and for the year.
Cash
Net cash provided by operating activities totaled $2 billion in the fourth quarter and $3.2 billion for the full year. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $1.8 billion in the quarter and $2.8 billion for the year. Free cash flow exceeded earnings from continuing operations in the fourth quarter and for the full year, benefitting from progress payments received by the Aerospace group as the new Gulfstream G650 business-jet aircraft received provisional type certification and the first 12 production aircraft were delivered into final-phase manufacturing.
Backlog
The company’s total backlog was $57.4 billion at the end of the year. In the fourth quarter, orders were particularly strong for combat vehicle production and improvements, both domestically and internationally. Gulfstream also enjoyed healthy demand across its product portfolio in the quarter, and for the full year recorded the highest number of orders for new aircraft since the introduction of the G650 in 2008.
Estimated potential contract value, representing management’s estimate of the value of unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised contract options, increased to $28 billion at year-end 2011. Total potential contract value, the sum of all backlog components, was $85.4 billion at the end of the year.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 95,100 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at www.generaldynamics.com.
Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management’s expectations, estimates, projections and assumptions.These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors.Additional information regarding these factors is contained in the company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
All forward-looking statements speak only as of the date they were made.The company does not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
STERLING HEIGHTS, Mich. – General Dynamics Land Systems announced today that the newly acquired Force Protection manufacturing facility in Ladson, S.C., will install additional combat-related equipment on 292 Double-V Hull Strykers to be deployed to Afghanistan.
The equipment provides combat capabilities to the vehicles in preparation for Operation Enduring Freedom (OEF) deployment. It includes additional communication, protection and situational- awareness enablers for the warfighter.
The $10 million in new work begins in March 2012 and leverages the skills of mechanics, supply professionals and management. Approximately 45 jobs will be created for the work, which is expected to be completed by February of 2013.
General Dynamics (NYSE: GD) completed its acquisition in December 2011 of Force Protection, Inc., a provider of blast- and ballistic-protected platforms that support the armed forces of the United States and its allies. The transaction, valued at approximately $360 million, was announced on November 7 and is expected to be accretive to General Dynamics’ earnings in 2012. Force Protection is part of General Dynamics Land Systems.
General Dynamics Land Systems is a leading manufacturer of wheeled, tracked and amphibious combat vehicles, offering a spectrum of design, production and lifecycle support to customers worldwide. Its portfolio of vehicle platforms includes the Stryker wheeled combat vehicle, the Abrams main battle tank and the MRAP class of tactical vehicles. The company employs world-class manufacturing and systems-integration processes to develop vehicles designed to meet current and future ground-combat requirements.
More information about General Dynamics is available at www.generaldynamics.com.
STERLING HEIGHTS, Mich. – The U.S. Army TACOM Lifecycle Management Command has awarded General Dynamics Land Systems $60 million under an existing contract to continue upgrading M1A1 tanks to the M1A2 Systems Enhancement Package (SEP) V2 configuration. General Dynamics Land Systems is a business unit of General Dynamics (NYSE: GD).
The most technologically advanced digital tank, the M1A2 SEP V2 includes improved color displays, day and night thermal sights, commander remote operated weapon station (CROWS II), a Thermal Management System (TMS) and a tank-infantry phone. The M1A2 SEP V2 maximizes the fighting ability of the tank on today’s battlefield while preparing the platform for tomorrow’s challenges.
LONDON, Ontario, Canada –
The U.S. Army TACOM Life Cycle Management Command has awarded a USD$126 million contract modification to General Dynamics Land Systems-Canada for 73 Light Armored Vehicles (LAVs) for a Foreign Military Sale (FMS). With this latest contract modification, the original contract, announced on January 4, 2011, is now valued at USD$264 million for 155 LAVs. General Dynamics Land Systems, the Canadian company’s parent corporation, is a business unit of General Dynamics (NYSE: GD).
The contract was signed through the Canadian Commercial Corporation, a Crown Agency of the Canadian Government.
Dr. Sridhar Sridharan, senior vice-president and general manager for International Operations, General Dynamics Land Systems, said, “We are pleased to be extending our relationship with TACOM in support of their Foreign Military Sales program. This order for additional vehicles is the best testament to the effectiveness of our Light Armored Vehicles with our international customers.”
Vehicles provided under this contract will be the LAV II version – a 300 horsepower 8x8 vehicle with a gross vehicle weight of up to 32,000 lbs (14,500 kg). The vehicles will be produced in six different variants.
For information about General Dynamics Land Systems–Canada, please visit www.gdlscanada.com.
More information about General Dynamics is available on the Internet at www.generaldynamics.com.
Transaction expands company’s portfolio of tracked and wheeled military vehicles, and enhances vehicle service offerings.
FALLS CHURCH, Va. –
General Dynamics (NYSE: GD) yesterday completed its acquisition of Force Protection, Inc., a provider of blast- and ballistic-protected platforms that support the armed forces of the United States and its allies. The transaction, valued at approximately $360 million, was announced on November 7 and is expected to be accretive to General Dynamics’ earnings in 2012.
Force Protection now becomes part of General Dynamics Land Systems. Force Protection’s portfolio includes the Buffalo mine clearance vehicle, the Cougar Mine Resistant Ambush Protected (MRAP) and the smaller Ocelot light patrol vehicle. These vehicles are designed specifically for reconnaissance and urban operations and to protect their occupants from land mines, hostile fire and improvised explosive devices. The company has delivered more than 3,000 vehicles under the U.S. military's MRAP vehicle program, and also provides its vehicles to foreign customers including the United Kingdom Ministry of Defence. Combined with General Dynamics Land Systems, the company will increase its global service network footprint to support the full vehicle fleet.
“Together with General Dynamics Land Systems’ portfolio of wheeled tactical and combat vehicles and main battle tanks, this acquisition expands our ability to deliver vehicles that are core to our customer’s force structure and their ability to fulfill their missions,” said Mark C. Roualet, president of General Dynamics Land Systems. “This strengthens our ability to upgrade and modernize our vehicles to meet our customer’s evolving needs.”
General Dynamics Land Systems is a leading manufacturer of wheeled, tracked and amphibious combat vehicles, offering a spectrum of design, production and lifecycle support to customers worldwide. Its portfolio of vehicle platforms includes the Stryker wheeled combat vehicle, the Abrams main battle tank and the MRAP class of tactical vehicles. The company employs world-class manufacturing and systems-integration processes to develop vehicles designed to meet current and future ground-combat requirements.
With the addition of Force Protection, General Dynamics Land Systems now employs approximately 9,500 workers worldwide.
More information about General Dynamics is available at www.generaldynamics.com.
Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
All forward-looking statements speak only as of the date they were made. The company does not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today announced the successful completion of its tender offer to purchase all of the outstanding shares of common stock of Force Protection, Inc. (NASDAQ: FRPT), for a price of $5.52 per share in cash. The offer and withdrawal rights expired, as scheduled, on Friday, December 16, 2011. The tender offer was launched on November 18, following the announcement on November 7 that General Dynamics and Force Protection had reached agreement on the terms of a merger agreement.The acquisition of Force Protection is expected to be accretive to General Dynamics’ earnings in 2012.
As of December 16, approximately 51.7 million shares of Force Protection common stock, including approximately 3.7 million shares subject to guaranteed delivery procedures, were validly tendered and not withdrawn in the offer.That amount represents approximately 81.7 percent of the outstanding shares of Force Protection common stock. General Dynamics accepted for payment the shares through its wholly-owned subsidiary, Falcon Acquisition Corp.General Dynamics will now exercise a “top up” option, as described in the Offer to Purchase, which will result in General Dynamics owning at least 90% of the outstanding shares of Force Protection. Once the top-up option is exercised, General Dynamics intends to complete a “short form” merger under Nevada law.
Force Protection will become a wholly owned subsidiary of General Dynamics as a result of the merger and will become part of General Dynamics Land Systems.
In the merger, each remaining share of Force Protection common stock that was not validly tendered in the tender offer, other than shares owned by General Dynamics or Force Protection, will be cancelled and converted into the right to receive the same $5.52 per share in cash that was paid in the tender offer.
Once the merger is completed, General Dynamics intends to cause all shares of Force Protection common stock to be delisted from the NASDAQ Capital Market, and Force Protection will no longer have reporting obligations under the Securities Exchange Act of 1934, as amended.
More information about General Dynamics is available at www.generaldynamics.com.
Notice to Investors This press release is for informational purposes only and is not a recommendation, an offer to purchase or a solicitation of an offer to sell shares of Force Protection stock. Falcon Acquisition Corp., a wholly-owned subsidiary of General Dynamics, has filed a tender offer statement and related exhibits with the SEC and Force Protection has filed a solicitation/recommendation statement with respect to the tender offer. Investors and stockholders of Force Protection are strongly advised to read the tender offer statement (including the related exhibits) and the solicitation/recommendation statement, as well as any amendments thereto and other relevant documents filed with the SEC, when they become available, because they will contain important information that stockholders should consider before making any decision regarding tendering their shares. The tender offer statement (including the related exhibits), the solicitation/recommendation statement and other documents (when available) filed with the SEC are available at no charge on the SEC’s website at www.sec.gov. In addition, the tender offer statement and other documents (when available) filed by the wholly-owned subsidiary of General Dynamics with the SEC are available to all stockholders of Force Protection free of charge at www.generaldynamics.com. The solicitation/recommendation statement and the other documents (when available) filed by Force Protection with the SEC are available to all stockholders of Force Protection free of charge at www.forceprotection.net.
Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Statements herein regarding the proposed transaction between General Dynamics and Force Protection, the expected timetable for completing the transaction, the potential benefits of the transaction, and any other statements about management’s future expectations, beliefs, goals, plans or prospects also constitute forward-looking statements. Forward-looking statements are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in each company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
All forward-looking statements speak only as of the date they were made. General Dynamics and Force Protection do not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
FALLS CHURCH, Va. – The board of directors of General Dynamics (NYSE: GD) today declared a regular quarterly dividend of 47 cents per share on the company’s common stock, payable February 10, 2012, to shareholders of record at the close of business on January 20, 2012.
General Dynamics, headquartered in Falls Church, Va., employs approximately 93,800 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about General Dynamics is available online at www.gd.com.
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STERLING HEIGHTS, Mich. – General Dynamics Land Systems, a business unit of General Dynamics (NYSE: GD), has been awarded a $9.9 million contract to upgrade military vehicles for the U.S. Army. The contract was awarded by the Army Contracting Command in Warren, Mich.
The work will be managed by the newly established General Dynamics Land Systems Combat Support and Sustainment business.
“This award to provide combat support and sustainment reflects the confidence our customers have in the General Dynamics Land Systems team,” said H. A. “Graz” Graziano, vice president of Combat Support and Sustainment for General Dynamics Land Systems. “The award has special significance in that it underscores the Army’s confidence in our ability to continue to provide worldwide, world-class support to the vital mission of U.S. Warfighters.”
General Dynamics employees currently provide vehicle support to military customers around the world. Combat Support and Sustainment’s field service representatives repair and retrofit vehicles in garrison and in theatre to ensure optimal vehicle performance. Existing support and sustainment employees will perform this work, which will be completed by May 2013.
More information about General Dynamics is available online at www.generaldynamics.com.
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STERLING HEIGHTS, Mich. – The U.S. TACOM Lifecycle Management Command has awarded General Dynamics Land Systems, a business unit of General Dynamics (NYSE: GD), a $395 million contract for work under the Egyptian tank co-production program. The contract funds the production of 125 M1A1 Abrams tank kits for the eleventh increment of the Egyptian co-production program.
Since 1992, General Dynamics has provided components for kits used in the co-production program. The parts are shipped to a production facility near Cairo, Egypt, where the tanks are manufactured for the Egyptian Land Forces. This latest increment will increase the number of Egyptian co-production-built tanks to 1,130.
Work on the components will be performed in Anniston, Ala.; Tallahassee, Fla.; Sterling Heights, Mich.; Lima, Ohio; and Scranton, Penn., by existing General Dynamics employees. Deliveries will begin in July 2013 and continue to January 2016.
More information about General Dynamics is available online at www.generaldynamics.com.
STERLING HEIGHTS, Mich. – Members of General Dynamics Land Systems’ Maneuver Collaboration Center, or mc², team were honored with a special Horizon Industry Award for Innovation at the Michigan Chapter of Women In Defense’s (WID) 2011 Black Tie Gala held Nov. 4.
The event, held at the Royal Park Hotel in Rochester, Mich., recognizes individuals and teams who have distinguished themselves in the defense community and assisted their respective companies in achieving critical objectives.
This is the first-ever Innovation Award.
“The mc² team is honored to receive this award from WID-Michigan,” said mc² Director Joanne F. Cavanaugh. “Collaborating with our partners across the defense and automotive industries allows us to provide the best military equipment in the world to Soldiers and Marines. The mc² team is committed to creating value for General Dynamics Land Systems’ customers by offering nontraditional ways to provide timely, mature, relevant technology solutions to the warfighter, “she said.
Building on General Dynamics Land Systems’ strong foundation of systems engineering and integration, mc² opened Oct. 15, 2010, to accelerate capability to warfighters who train with, fight in and maintain General Dynamics’ military ground vehicles. The mc² creates a nontraditional collaborative environment to foster innovative solutions and enable rapid transition of mature technologies into vehicles and programs to address the Armed Forces’ immediate needs.
A state-of-the-art collaborative innovation center and virtual community, mc² allows General Dynamics Land Systems to join forces with suppliers, military personnel and government officials – from anywhere, at any time – to develop innovative combat solutions and accelerate these solutions to the warfighter.
In opening the “bandwidth” or “aperture” into the company, mc² focuses on the future of military ground vehicle technology insertions, improvements and ultimately, increased warfighter effectiveness, safety and survivability. Visit us or become a member at www.gdls.com/mc2.
The Women In Defense Michigan Chapter strengthens and influences the defense and national security industries by inspiring women, cultivating leadership and growing professional relationships. WID is open to both men and women. For more information, visit www.wid-mi.org.
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- Force Protection shareholders to receive 31% premium over recent share price.
- Transaction expected to be accretive to General Dynamics’ earnings in 2012.
FALLS CHURCH, VA. and SUMMERVILLE, S.C. – General Dynamics (NYSE: GD) and Force Protection, Inc. (NASDAQ: FRPT) today announced that they have entered into a definitive merger agreement under which General Dynamics will acquire Force Protection for a price of $5.52 per share of common stock, or approximately $360 million.
Force Protection will become a part of General Dynamics Land Systems, the Sterling Heights, Mich.-based designer and manufacturer of Abrams main battle tanks and Stryker infantry combat vehicles.
“Force Protection complements and strategically expands General Dynamics’ armored vehicle business, adding new products to the expansive portfolio of combat vehicles that we currently manufacture and support,” said Mark C. Roualet, president of General Dynamics Land Systems. “In addition, Force Protection’s skilled workforce provides high-quality support and sustainment services to an installed fleet of approximately 3,000 vehicles, strengthening our ability to support assets deployed with U.S. forces around the world. With this acquisition, we will create new opportunities to serve domestic and international customers alike.”
Michael Moody, chairman and chief executive officer of Force Protection, Inc., commented, “After careful consideration of the strategic direction of Force Protection, our board decided that a sale to General Dynamics would maximize value for our stockholders. With their armored vehicle business, General Dynamics will be able to pursue opportunities that we could not have pursued as a stand-alone company. As part of the General Dynamics family, our innovative products and offerings will continue to provide militaries worldwide critical assets that save troops’ lives.”
The proposed acquisition has been approved by the board of directors of each company. Under the terms of the merger agreement, General Dynamics will commence a tender offer for all of the outstanding shares of common stock of Force Protection. Force Protection’s board of directors has resolved to recommend that Force Protection stockholders tender their shares into the tender offer in accordance with the terms of the merger agreement. The transaction is subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the companies expect the transaction to be completed by year-end 2011. The transaction is expected to be accretive to General Dynamics’ earnings in 2012.
Force Protection, which has approximately 1,100 employees, provides survivability solutions to support the armed forces of the United States and its allies. The company designs, manufactures, tests, delivers and supports its blast- and ballistic-protected products to increase survivability for users.
Force Protection’s specialty vehicles – including the Buffalo, Cougar and Ocelot – are at the forefront of blast- and ballistic-protected technology. Those vehicles are designed specifically for reconnaissance and urban operations and to protect their occupants from landmines, hostile fire and improvised explosive devices (IEDs, commonly referred to as roadside bombs). The company has delivered more than 3,000 vehicles under the U.S. military's Mine Resistant Ambush Protected (MRAP) vehicle program, and also provides Cougar and Buffalo mine-protected vehicles to foreign customers including the United Kingdom Ministry of Defence.
General Dynamics Land Systems is a leading manufacturer of wheeled, tracked and amphibious combat vehicles, offering a spectrum of design, production and lifecycle support to customers worldwide. General Dynamics Land Systems employs world-class manufacturing and systems-integration processes to develop vehicles designed to meet current and future ground-combat requirements. The company employs approximately 8,400 workers.
More information about General Dynamics is available at www.generaldynamics.com.
Notice to Investors
The tender offer described in this press release has not yet commenced. This press release is not a recommendation, an offer to purchase or a solicitation of an offer to sell shares of Force Protection stock. At the time the tender offer is commenced, Falcon Acquisition Corp., a wholly-owned subsidiary of General Dynamics, will file a tender offer statement and related exhibits with the U.S. Securities and Exchange Commission (the “SEC”) and Force Protection will file a solicitation/recommendation statement with respect to the tender offer. Investors and stockholders of Force Protection are strongly advised to read the tender offer statement (including the related exhibits) and the solicitation/recommendation statement, as they may be amended from time to time, when they become available, because they will contain important information that stockholders should consider before making any decision regarding tendering their shares. The tender offer statement (including the related exhibits) and the solicitation/recommendation statement will be available at no charge on the SEC's website at www.sec.gov. In addition, the tender offer statement and other documents that the wholly-owned subsidiary of General Dynamics files with the SEC will be made available to all stockholders of Force Protection free of charge at www.generaldynamics.com. The solicitation/recommendation statement and the other documents filed by Force Protection with the SEC will be made available to all stockholders of Force Protection free of charge at www.forceprotection.net.
Additional Information about the Merger and Where to Find It
In connection with the potential one-step merger of Falcon Acquisition Corp. with and into Force Protection without the prior consummation of the Offer (the “One Step Merger”), Force Protection will file a proxy statement with the SEC. Additionally, Force Protection will file other relevant materials with the SEC in connection with the proposed acquisition of Force Protection by General Dynamics and Falcon Acquisition Corp. pursuant to the terms of the Merger Agreement. Investors and stockholders of Force Protection are strongly advised to read the proxy statement and the other relevant materials, as they may be amended from time to time, when they become available, because they will contain important information about the One Step Merger and the parties to the One Step Merger, before making any voting or investment decision with respect to the One Step Merger. The proxy statement will be available at no charge on the SEC’s web site at www.sec.gov. The proxy statement and other documents filed by Force Protection with the SEC will be made available to all stockholders of Force Protection free of charge at www.forceprotection.net.
Force Protection and its directors and officers may be deemed to be participants in the solicitation of proxies from Force Protection’s stockholders with respect to the One Step Merger. Information about Force Protection’s directors and executive officers and their ownership of Force Protection’s common stock is set forth in the proxy statement for Force Protection’s 2011 Annual Meeting of Stockholders, which was filed with the SEC on March 25, 2011. Force Protection stockholders may obtain additional information regarding the interests of Force Protection and its directors and executive officers in the Merger, which may be different than those of Force Protection stockholders generally, by reading the proxy statement and other relevant documents regarding the One Step Merger, when filed with the SEC.
Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
All forward-looking statements speak only as of the date they were made. The company does not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
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STERLING HEIGHTS, Mich. – General Dynamics Land Systems Maneuver Collaboration Center (mc²), in conjunction with the Altshuller Institute for TRIZ Studies, will host the 2011 International TRIZ (Theory of Inventive Problem Solving) Conference Nov. 28-30 at its Sterling Heights, Mich., facility.
Themed "TRIZ for Innovation Today and Beyond,” the event brings together an array of international TRIZ experts and end users. The conference will feature basic and advanced tutorials, a tour of the mc² and case studies. Guest speakers include Sonya F. Sepahban, General Dynamics Land Systems senior vice president of Engineering, Development and Technology; and Joanne F. Cavanaugh, director of the mc².
TRIZ (pronounced TREEZ) is the Russian acronym for the Theory of Inventive Problem Solving. This proven algorithmic approach to solving technical problems began in 1946 when the Russian engineer and scientist Genrikh Altshuller studied thousands of patents and noticed certain patterns. From these patterns, he discovered that the evolution of a technical system is not a random process, but is governed by certain objective laws. These laws can be used to consciously develop a system along its path of technical evolution - by determining and implementing innovations.
For more information or to register for the 2011 International TRIZ Conference, please visit http://www.aitriz.org/index.php?option=com_content&;task=section&id=21&Itemid=178 . Space is limited and attendees must be preregistered to attend. Walk-in registrations are not available. General Dynamics Land Systems clients, suppliers and academic partners may obtain a discounted registration fee. Please contact Sheryl Brown at 586-825-4499 for information.
Building on General Dynamics Land Systems’ strong foundation of systems engineering and integration, mc² opened Oct. 15, 2010 to accelerate timely, relevant capability to Warfighters who train with, fight in and maintain Land Systems’ military ground vehicles. The mc² creates a non-traditional collaborative environment to foster Innovative Solutions and enable rapid transition of mature technologies into vehicles and programs to address the Armed Forces’ immediate needs.
A state-of-the-art collaborative innovation center and virtual community, mc² allows General Dynamics Land Systems to join forces with suppliers, military personnel and government officials – from anywhere, at any time – to develop innovative combat solutions and accelerate these solutions to the Warfighter. Visit the mc² online at www.gdls.com/mc2.
The primary objective of the Altshuller Institute is the advancement of the Theory of Inventive Problem Solving and the allied arts and sciences, and maintenance of high professional standing among its members. Learn more at http://www.aitriz.org/index.php.
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- EPS from continuing operations increases 7.6%
- Funded backlog increases on continuing demand for key products
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported third-quarter 2011 earnings from continuing operations of $665 million, or $1.83 per share on a fully diluted basis, compared to 2010 third-quarter earnings from continuing operations of $649 million, or $1.70 per share fully diluted. Revenues in the quarter were $7.9 billion. Operating earnings were $998 million, an increase of 3.3 percent over third-quarter 2010.
Net earnings for the third quarter of 2011 were $652 million, compared to $650 million in the year-ago period. Net earnings on a per-share, fully diluted basis were $1.80 in the current quarter, an increase of 5.9 percent over the year-ago period.
Margins
Company-wide operating margins in the quarter grew to 12.7 percent, an increase of 60 basis points over third-quarter 2010. The growth in operating margins was driven by improvement in the Information Systems and Technology and Marine Systems groups.
Backlog
Funded backlog grew in three of the company’s four business groups, increasing by 3.7 percent in thirdquarter 2011 to $45.9 billion. Total backlog, which includes both funded and unfunded orders, grew by 2.5 percent in the quarter, to $58.5 billion.
The Aerospace group’s funded backlog increased $358 million in the third quarter on the strength of continued international demand for Gulfstream’s portfolio of aircraft. The $1.3 billion increase in funded defense-related backlog was supported by several significant orders in the quarter, including a $1.8 billion award to Marine Systems for two DDG-1000 Zumwalt-class destroyers, as well as a $565 million contract for construction of a DDG-51 Arleigh Burke-class destroyer which includes an option for an additional ship. Similarly, Combat Systems was awarded a $250 million order to produce 115 Stryker vehicles with the new double-V-hull configuration, and a $205 million order from the U.S. Marine Corps for upgrade kits for mine-resistant, ambush-protected vehicles.
In addition to the total backlog, the company’s estimated potential contract value grew by 28.7 percent over the end of the second quarter, largely on the strength of a $5.7 billion increase in the Information Systems and Technology group. Estimated potential contract value is management’s estimate of the ultimate value of unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options.
Cash
Net cash provided by operating activities in the third quarter totaled $136 million, and $1.2 billion year-to-date. Third-quarter free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $15 million. Cash performance in the quarter was impacted by inventory growth in the Aerospace group in preparation for ultra-large-cabin G650 green aircraft deliveries in the fourth quarter.
“General Dynamics continued to execute effectively in the third quarter,” said Jay L. Johnson, chairman and chief executive officer. “This solid operating performance reflects our ongoing focus on increasing efficiency, improving productivity and driving cost out of our businesses. Importantly, order activity in the quarter underscored the enduring nature of customer demand for our products and services.” General Dynamics, headquartered in Falls Church, Virginia, employs approximately 93,800 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies.
More information about the company is available on the Internet at www.generaldynamics.com.
Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
All forward-looking statements speak only as of the date they were made. The company does not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
WEBCAST INFORMATION: General Dynamics will webcast its third-quarter securities-analyst conference call at 9 a.m. Eastern Time on Wednesday, October 26, 2011. The webcast will be a listen-only audio event, available at www.generaldynamics.com. An on-demand replay of the webcast will be available by noon October 26 and will continue for 12 months. To hear a recording of the conference call by telephone, please call 888-286-8010 (international: 617-801-6888); passcode 75906545. The phone replay will be available from noon October 26 until midnight November 2, 2011.
STERLING HEIGHTS, Mich. – The U.S. Army TACOM Lifecycle Management Command has awarded General Dynamics Land Systems, a business unit of General Dynamics (NYSE:GD), $367 million to produce and deliver an additional 177 Stryker combat vehicles equipped with double-V hulls (DVHs).
The double-V hull was developed on an accelerated timeline to provide Stryker-borne soldiers increased protection from the effects of roadside mines and improvised explosive devices. Recent Army reports indicate that deployed vehicles with the new double-V-hull design are providing significantly increased protection and survivability to soldiers.
This award, combined with previous orders for double-V-hulled Stryker vehicles, will provide the Army with the equivalent of two Stryker DVH brigade combat teams.
Over 320 double-V-hulled Stryker vehicles have been produced so far, under a contract awarded in July 2010 for the production of 450 double-V-hull vehicles. Engineers and production workers at General Dynamics Land Systems conceived, engineered, manufactured and delivered the first operational vehicles to the Army in May 2011, about 14 months after the double-V hull concept was initially proposed to the Army. Deliveries will be completed by July 2013.
Work on double-V-hulled Stryker vehicles is performed in Anniston, Ala., Lima, Ohio, and London, Ontario, Canada.
General Dynamics will deliver double-V hull Stryker vehicles in seven variants under this award: Infantry Carrier, Medical Evacuation Vehicle, Engineers Squad Vehicle, Fire Support Vehicle, Commanders Vehicle, Mortar Carrier Vehicle and Anti-tank Guided Missile Vehicle. Other configurations of the Stryker include: Reconnaissance Vehicle, Nuclear Biological Chemical Reconnaissance Vehicle and Mobile Gun System.
The Stryker family of vehicles is known for high performance as well as versatility, mobility and survivability. The Stryker’s commonality reduces the Army’s logistics footprint and minimizes costs. The Stryker is fast, capable of reaching speeds in excess of 60 mph, and it is lighter, smaller and more readily deployable than any other Army combat vehicle.
More information about General Dynamics is available online at www.generaldynamics.com.
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STERLING HEIGHTS, Mich. – General Dynamics Land Systems’ Sterling Heights, Mich., complex was awarded LEED® certification from the U.S. Green Building Council, as verified by the Green Building Certification Institute. LEED, or Leadership in Energy and Environmental Design, is the nation’s pre-eminent program for the design, construction and operation of high-performance green buildings.
The company’s 450,000 square-foot Sterling Heights complex achieved LEED certification for efficiencies in energy use, lighting, water and material use, as well as for incorporating a variety of other sustainable strategies. By using less energy and water, LEED-certified buildings save money, reduce greenhouse-gas emissions and contribute to a healthier environment for the community. This facility is one of only 17 buildings in Michigan to achieve the LEED certification in the category of Existing Buildings: Operations & Maintenance.
“General Dynamics Land Systems is committed to protecting the environment and has designated key resources to ensure our green program is successful,” said Gary King, director of Manufacturing Development for General Dynamics Land Systems.
“We created a ‘Green Team’ that has representatives from all our internal organizations,” King continued. “The team is responsible for getting the support of all Land Systems employees for our green initiatives.”
Under the Green Team’s leadership, and with the support of employees and local utilities, the company’s green program has achieved LEED® certification and surpassed $1 million in annual green operational savings. It has also resulted in a decrease of 2,495 metric tons of carbon dioxide emissions through the purchase of renewable power.
General Dynamics Land Systems current electricity supply contract for the Sterling Heights complex includes renewable energy credits for 25 percent of its electrical load. In 2012, this percentage will rise to 50 percent. Additionally, the Sterling Heights complex and four other Land Systems locations have been recognized as Green Power Partners by the U.S. Environmental Protection Agency.
General Dynamics Land Systems is headquartered in Sterling Heights and employs approximately 9,300 worldwide, with 2,300 in southeastern Michigan. The company provides a full spectrum of land and amphibious combat systems, subsystems and components worldwide. Its strengths are world-class design and systems integration, superior production and innovative life cycle support. It is a business unit of General Dynamics (NYSE: GD), a market leader in business aviation; land and expeditionary combat vehicles and systems, armaments, and munitions; shipbuilding and marine systems; and mission-critical information systems and technology.
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EDMONTON, Alberta, and LONDON, Ontario, Canada – The Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women, and the Honourable Julian Fantino, Associate Minister of National Defence, announced today that the Government of Canada has awarded a contract valued at C$1.064 billion (US$1.052 billion) to General Dynamics Land Systems-Canada to incorporate a comprehensive upgrade package into the Canadian Army’s fleet of LAV III combat vehicles. The LAV III Upgrade Project will modernize 550 vehicles, significantly enhancing their survivability, mobility and firepower and extending the fleet’s lifecycle to 2035.
Survivability upgrades will include the introduction of double-V-hull technology, an innovative enhancement developed by General Dynamics Land Systems-Canada engineers, as well as add-on armour protection and energy-attenuating seats. Together, these improvements will provide crew members greater protection against mine blasts, IEDs and other threats.
The upgrades represent the latest armoured-vehicle technologies developed by General Dynamics Land Systems-Canada’s engineers and its Canada-wide supplier base. Significant work will be performed at General Dynamics’ facilities in London, Ontario, and Edmonton, Alberta, as well as the company’s nationwide network of over 400 Canadian suppliers. All regions of Canada will benefit from this work, which is expected to be completed in 2017.
“Canadian soldiers need the best tools for the job and deserve the best protection we can give them,” said Danny Deep, vice president of General Dynamics Land Systems-Canada. “This contract will enhance the LAV III fleet’s survivability, operational capability and long-term performance through the addition of cutting-edge technologies. It will also provide much-needed job stability throughout Canada’s high-value defence sector.”
The LAV III’s automotive performance, handling characteristics and payload capacity will be optimized by the addition of mobility system upgrades such as a more powerful engine, more robust driveline and suspension, and a height management system (HMS). The 25mm turret’s crew ergonomics will be improved by incorporating larger hatches, and its capabilities will be enhanced by the addition of the latest technologies, including improved fire control, thermal, day and low-light sights, and data displays.
For information about General Dynamics Land Systems-Canada, please visit www.gdlscanada.com.
More information about General Dynamics is available on the Internet at www.generaldynamics.com.
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General Dynamics to Webcast Third-Quarter 2011 Financial Results Conference Call
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) will webcast its third-quarter 2011 financial
results conference call on Wednesday, October 26, beginning at 9 a.m. Eastern Time.
Jay L. Johnson, chairman and chief executive officer; Hugh Redd, senior vice president and chief financial officer; and Amy Gilliland, staff vice president for investor relations, will review financial results for the third quarter of 2011 and will answer questions from financial analysts.
The live webcast of the conference call will be available at www.generaldynamics.com. A replay will be
available shortly after the live presentation.
More information about General Dynamics is available online at www.generaldynamics.com.
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FALLS CHURCH, Va. – The board of directors of General Dynamics (NYSE: GD) today authorized
management to repurchase up to 10 million shares of the company’s issued and outstanding common stock on the open market.
General Dynamics, headquartered in Falls Church, Va., employs approximately 95,000 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about General Dynamics is available online at www.gd.com.
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STERLING HEIGHTS, Mich. – The U.S. Army TACOM Lifecycle Management Command has awarded General Dynamics Land Systems, a business unit of General Dynamics (NYSE:GD), $243 million to produce and deliver an additional 115 Stryker combat vehicles equipped with double-V hulls (DVHs).
The double-V hull was developed on an accelerated timeline to provide Stryker-borne soldiers increased protection from the effects of roadside mines and improvised explosive devices. Recent Army reports indicate that deployed vehicles with the new double-V-hull design are providing significantly increased protection and survivability to soldiers.
About 300 double-V-hulled Stryker vehicles have been delivered so far, under a contract awarded in July 2010 for the production of 450 double-V-hull vehicles. Engineers and production workers at General Dynamics Land Systems conceived, engineered, manufactured and delivered the first operational vehicles to the Army in about 14 months. Initial deliveries were made in May 2011.
Under the new contract, General Dynamics will also provide production sustainment support and obsolescence management services. Work will be performed in Anniston, Ala., London, Ontario, Canada, and Lima, Ohio. Deliveries will be completed by September 2012.
General Dynamics will deliver double-V hull Stryker vehicles in six variants under this award: Infantry Carrier, Medical Evacuation Vehicle, Engineers Squad Vehicle, Fire Support Vehicle, Commanders Vehicle and Mortar Carrier Vehicle. Other configurations of the Stryker include: Anti-tank Guided Missile, Reconnaissance Vehicle, Nuclear Biological Chemical Reconnaissance Vehicle and Mobile Gun System.
The Stryker family of vehicles is known for high performance as well as versatility, mobility and survivability. The Stryker’s commonality reduces the Army’s logistics footprint and minimizes costs. The Stryker is fast, capable of reaching speeds in excess of 60 mph, and it is lighter, smaller and more readily deployable than any other Army combat vehicle.
More information about General Dynamics is available online at www.generaldynamics.com.
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STERLING HEIGHTS, Mich. – The American Institute of Architects – Grand Valley Chapter recognized General Dynamics Land Systems with a 2011Building Honor Award for its Maneuver Collaboration Center, or mc². General Dynamics accepted the award in late September at a ceremony held at the Kendall College of Art and Design in Grand Rapids, Mich.
Architectural firm Fishbeck, Thompson, Carr & Huber of Grand Rapids designed the mc² building and Barton Malow Company of Southfield was the builder. mc² officially opened on October 15, 2010.
General Dynamics Land Systems is headquartered in Sterling Heights and employs approximately 9,300 worldwide, with 2,300 employees in southeastern Michigan. The company provides a full spectrum of land and amphibious combat systems, subsystems and components worldwide. Its strengths are world-class design and systems integration, superior production and innovative life cycle support. It is a business unit of General Dynamics (NYSE: GD), a market leader in business aviation; land and expeditionary combat vehicles and systems, armaments, and munitions; shipbuilding and marine systems; and mission-critical information systems and technology.
Building on General Dynamics Land Systems’ strong foundation of systems engineering and integration, the mission of the mc2 is to create a collaborative environment to foster innovative solutions and enable rapid transition of mature technologies into vehicles and programs to address the armed forces’ immediate needs. mc² facilitates and widens access to General Dynamics, providing an enhanced experience and interface to the company’s traditional suppliers. It helps to attract and engage small businesses and innovators (nontraditional suppliers) with technology solutions. It is currently engaged with nearly 3,000 members, including suppliers representing more than 600 organizations.
mc² is preparing numerous innovative solutions for immediate insertion into military programs and is investigating many more for potential future application. It is extending its reach to academia, research centers and U.S. government agencies and collaboration with combat veterans of Iraq and Afghanistan is underway.
To celebrate the first anniversary of the mc² grand opening, General Dynamics will host an Open House on Wednesday, Oct. 19, from 1 to 5 p.m., at its headquarters at 38500 Mound Road.
To attend the Open House, please register by October 12 at www.gdls.com/mc2openhouse.
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WHAT: At the Association of the U.S. Army (AUSA) 2011 Annual Meeting & Exposition, General
Dynamics is featuring technologies that support the Army through unprecedented survivability, connectivity, mobility and lethality.
WHEN: October 10 – 12, 2011
Visit www.AUSA.org for symposium hours and admissions information.
WHERE: Walter E. Washington Convention Center, Washington, D. C.
Booth 819: General Dynamics Ordnance and Tactical Systems
Booth 825: General Dynamics Land Systems and General Dynamics Armament and Technical Products
Booth 1119: AxleTech International, a General Dynamics Company
Booth 1124: General Dynamics C4 Systems
Booth 3003: General Dynamics European Land Systems
Exhibit highlights include:
- Stryker family of vehicles, featuring an Infantry Carrier Vehicle outfitted with a double-V hull, a Medical Evacuation Vehicle and a Command Vehicle.
- Fully operational JTRS HMS AN/PRC-154 Rifleman Radio, AN/PRC-155 two-channel Manpack Radio and Small Form Fit (SFF) radios for unmanned aerial systems and
robots, demonstrating communications that deliver unprecedented communications capabilities to soldiers and commanders.
- Warfighter Information Network-Tactical (WIN-T) Network Management System, used to plan and engineer tactical communications networks.
- The Flyer? Advanced Light Strike Vehicle, a lightweight and modular vehicle that can be quickly configured to perform multiple missions including light strike assault, rescue
and evacuation and reconnaissance, either armored or unarmored. The vehicle will be shown in multiple variant configurations throughout AUSA.
- GAU-19/B .50 caliber Gatling guns.
- 3000 Series Independent Suspension Axle System (ISAS®), designed for applications requiring high mobility and maneuverability.
For each of the General Dynamics’ booths, exhibit highlights include:
Booth 819: General Dynamics Ordnance and Tactical Systems
The Flyer Advanced Light Strike Vehicle: The Flyer is an advanced light strike vehicle that is lightweight and capable of being either internally or externally transportable on the V-22, CH-53, C-130 and C-5 aircraft. The vehicle’s modular approach provides the warfighter with a rapid mission reconfiguration capability. The vehicle can be quickly configured in the field to perform multiple missions such as light strike assault, rescue and evacuation, command and control and reconnaissance, either armored or unarmored. The Flyer’s design is highly adaptable to severe, rugged and restrictive terrains and provides off-road, cross-country mobility. The Flyer is offered in partnership with Flyer Defense, LLC. General Dynamics will exhibit multiple variant configurations during AUSA in booth 819 and in Ceradyne Armor Systems booth 3039, the armor partner for the Flyer.
30mm M789 HEDP: The 30mm M789 HEDP is a high-explosive, dual purpose munition used for low-intensity conflict against soft and light armored targets. It is the primary tactical round of the Apache AH-64 helicopter, widely used in current combat operations. The Apache’s ability to provide accurate air support with minimal collateral damage led to increased use and volume demands for M789 ammunition. Earlier this year and ahead of schedule, General Dynamics successfully built a new state-of-the-art production capability and received its first production contract in August. The new production line, and its independent supplier base, eliminate the potential of a single point of production failure and provide the Army with sufficient production resources to deliver ammunition to the warfighter quickly and efficiently.
Booth 825: General Dynamics Land Systems and General Dynamics Armament and Technical Products
Stryker Family of Vehicles: The Stryker is an eight-wheeled combat vehicle that is lighter, smaller and more readily deployable than other Army combat vehicles. Three Strykers will be featured:
- Stryker Infantry Carrier Vehicle (ICV) outfitted with a double-V hull: The U.S. Army and
General Dynamics joined forces to provide warfighters with the Stryker Double-V Hull (DVH) family of vehicles. The double-V hull was developed on an accelerated timeline to provide Strykerborne
soldiers increased protection from the effects of roadside mines and improvised explosive devices. Recent Army reports indicate that vehicles deployed in Afghanistan with the new double-V-hull design are providing significantly increased protection and survivability to soldiers.
- Stryker Medical Evacuation Vehicle (MEV): The Stryker MEV is an essential element to combat formations, giving Brigade Combat Teams the capability to transport wounded soldiers to treatment within the golden hour at speeds up to 60 mph. The MEV has the capacity to carry four litters complete with a lift system, encased by Stryker’s battle-proven design. The Stryker MEV successfully supported Heavy Brigade Combat Team deployments in Iraq.
- Stryker Command Vehicle (CV): The Stryker Command Vehicle is a fast-moving, armored tactical operations center allowing commanders to efficiently and effectively manage the battlefield with real-time intelligence and communication with their unit. Enabled by Stryker’s innate capability and performance, the CV has an unmatched combination of survivability, mobility and lethality, making it suited for roles in any combat formation.
Maneuver Collaboration Center (mc2) Kiosk: mc2 is a virtual community that encourages collaboration for innovative solutions and offers small businesses unparalleled opportunities to introduce their capabilities to General Dynamics Land Systems. Available on a 24/7 basis to its members, mc² aims to improve General Dynamics’ product offerings in record-time to better serve warfighters. Visitors to AUSA will have an opportunity to learn about mc2 and sign up as a community member.
Active Protection System: Bright Arrow, Iron Fist and Shock Absorber: Active protection system (APS) protects vehicles and troops from anti-tank rockets and guided missiles with embedded technology for soft- and hard-kill layers of defense. APS is comprised of three effective systems: one for man-portable use (Shock Absorber), another for lightweight vehicles (Bright Arrow) and a third for heavy armor vehicles (Iron Fist). General Dynamics and Israel Military Industries are teamed to provide this new, affordable capability to the Army.
Fire Suppression: Delta Detector, N2 Gas Generator and Water Mist: Fire Suppression protects occupants in a variety of enclosed spaces from overheating conditions or fire exposure. General Dynamics and LVT, Israel’s leading fire protection equipment manufacturer, are teaming to provide three fire suppression technologies to minimize injuries to soldiers and equipment damage. The Delta Detector indentifies fire or overheating by measuring the rate of pressure increase in an enclosed space. The N2 Gas Generator uses non-toxic nitrogen gas to rapidly suppress fires or explosions. The Water Mist technology offers a superior suppression capability with non-toxic micro droplets.
GAU-19/B .50 caliber Gatling Guns: General Dynamics’ GAU-19/B provides lightweight, lethal firepower to a variety of land, air and sea platforms. The GAU-19/B is a lighter, more efficient mechanical design, with the same reliability and firepower as the well-known GAU-19/A. The Gatling gun is an ideal weapon for utility, scout and attack helicopters, providing self defense and light-attack capabilities.
Booth 1119: AxleTech International, a General Dynamics Company
3000 Series Independent Suspension Axle System (ISAS®): AxleTech International will showcase its state-of-the-art 3000 Series independent suspension axle system (ISAS®) for applications requiring highmobility and maneuverability. The double-wishbone design provides unrivaled ride control and handling in all operating environments.
Booth 1124: General Dynamics C4 Systems
Mission Planning and Command and Control Demonstrations: Tactical Internet Enablers: General Dynamics is featuring several networking demonstrations that show how its products fill critical gaps in military forces’ communication needs, including:
- JTRS HMS AN/PRC-154 Rifleman Radio, AN/PRC-155 two-channel Manpack and Small
Form Fit (SFF) Radios: Live at AUSA, these radios will be fully operational, demonstrating communications that give soldiers on the battlefield secure, mobile voice, video and data communications capabilities that are similar to those available through commercial cellular networks. The radios use the Soldier Radio Waveform (SRW) and other waveforms to deliver unprecedented communications capabilities into the hands of soldiers and their commanders.
- Tactical Radio Configuration Toolkit: New software tools that make fielding Joint Tactical Radio System (JTRS) Handheld, Manpack, Small Form Fit (HMS) radios easier. The
demonstration shows how mission planners, prior to an operation, can easily plan, configure and monitor HMS radios.
- Sidewinder, Rifleman Radio Vehicle Adaptor: With the Sidewinder accessory, Rifleman radios quickly transition from a body-worn radio to fit in most tactical vehicle’s standard mounting tray. The adaptor expands the networking capability of the Rifleman radio by a factor of 10 and also works with vehicles’ existing intercom systems.
- Warfighter Information Network-Tactical (WIN-T): The Army’s tactical enterprise network moves broadband data and telephone services to Army headquarters and commanders on the tactical battlefield.
- GD300 rugged body-worn computer: The soldier-carried Rifleman radio connects to a GD300 rugged body-worn computer and brings the popular TIGR ground-reporting capability to dismounted warfighters. This enables soldiers to track events and the location of team members as well as mark buildings and ‘clear’ areas.
- DS310: New from General Dynamics C4 Systems Fortress Technologies, this COTS-based PCcard extends Secret-and-below encryption to the network edge and has built-in WiFi and Ethernet communication.
- Itronix GD3015 new semi-rugged tablet PC: Weighing less than three pounds and delivering the full functionality of a notebook with the critical components and options needed by tactical users.
Deployable Data Centers: A containerized, CH – 47 helicopter sling-transportable data center specifically designed for emergency response or remote operation sites and can support up to 1,500 users per shelter. The processing center is built ‘from the ground up,’ based on the end-users’ needs. This deployable data center provides all of the services of a common technical control facility as well as voice and data telecommunications and cloud computing.
WIN-T Network Management System (NMS): The WIN-T NMS is the program of record system used to plan and engineer tactical communications networks. NMS enables critical feedback and assistance to accelerate the development of high-quality network plans for even the most complex operational scenarios; maneuver is no longer constrained by the network.
Dismounted Company Command Post (DCCP): A lightweight, battery and solar-powered ‘network in a suitcase,’ DCCP enables Internet Protocol (IP) voice and data communication capabilities to the Company level and below, operating in remote or isolated areas. DCCP is fully interoperable with Army and Marine Corps tactical networks.
Secure voice and data communications products: Demonstrations include:
- ProtecD@R® family of data-at-rest encryptors.
- TACLANE® Multibook, a complete mobile classified computing solution.
- Sectéra® vIPer™ Universal Secure Phone, providing end-to-end security for Voice over IP and
PSTN networks.
- Sectéra Edge™ (SME PED) smartphone, providing SIPRNET access anytime, anywhere.
- TACLANE® family of high-speed interoperable in-line network encryptors.
Booth 3003: General Dynamics European Land Systems
EAGLE is a light tactical vehicle that is designed to survive against the most aggressive conventional and asymmetric threats. It is available in a wide range of configurations and can fulfill roles such as command and control, weapons carrier, reconnaissance and logistics
Additional Media Contacts:
General Dynamics Armament and Technical Products:
Karl Johnson, Director of Communications, 704-714-8121
General Dynamics C4 Systems:
Fran Jacques, Director of Strategic Communications, 480-441-2885
General Dynamics Ordnance and Tactical Systems:
Laurie VanBrocklin, Sr. Director, Marketing Communications, 727-578-8187
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FALLS CHURCH, Va. – General Dynamics (NYSE: GD) announced today that Alfonso J. Ramonet, 53, will become president of General Dynamics European Land Systems and a vice president of the corporation on December 1. Ramonet will report to David K. Heebner, executive vice president of General Dynamics’ Combat Systems group.
Ramonet will succeed John C. Ulrich, who will become chief operating officer of General Dynamics Ordnance and Tactical Systems, reporting to Michael S. Wilson, president. Ulrich, who also is a vice president of the corporation, has been General Dynamics European Land Systems’ president since 2006.
General Dynamics European Land Systems, headquartered in Madrid, and General Dynamics Ordnance and Tactical Systems, headquartered in St. Petersburg, Fl., are subsidiaries of General Dynamics.
In announcing Ramonet’s appointment, Heebner said, “Alfonso Ramonet has a deep understanding of General Dynamics European Land Systems’ operations, customers and products. I’m confident he will continue to position the company as a global leader in land combat systems, delivering vehicles and
weapon systems that meet the needs of our customers around the world.”
Ramonet has served as chief operating officer for General Dynamics European Land Systems under Ulrich since April 2010. Previously, he managed various programs for the company including tracked vehicles, artillery systems and ammunition. Ramonet joined Santa Bárbara Sistemas in 1990 and was production director of vehicles and artillery when it was acquired by General Dynamics in 2001. He holds a degree in mechanical industrial engineering from the Polytechnic University of Madrid.
Ulrich joined General Dynamics when it acquired General Motors Defense in 2003. At that time he was named senior vice president of General Dynamics Land Systems–Canada, where he was responsible for the international wheeled vehicles business. He holds a bachelor’s degree in business administration from the University of Wisconsin, and a master’s of business administration from the Illinois Institute of Technology.
General Dynamics European Land Systems conducts its business through four European operating units located in Austria, Germany, Spain and Switzerland. With more than 3,200 highly skilled technical employees, the company designs, manufactures and delivers land combat systems to global customers, including wheeled, tracked and amphibious vehicles, armaments and munitions. More information is available online at www.gdels.com.
General Dynamics Ordnance and Tactical Systems, headquartered in St. Petersburg, Fla., is a world leader in the manufacture of large-, medium- and small-caliber direct and indirect-fire munitions, shaped-charge warheads and propellants. It also manufactures precision metal components and aerostructures in support of the tactical missile industry. For more information, please visit www.gd-ots.com.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 88,000 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies.
More information about the company is available at www.generaldynamics.com.
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STERLING HEIGHTS, Mich. – General Dynamics Land Systems recently announced executive appointments effective Sept. 1.
Gary L. Whited has been named senior vice president and general manager for General Dynamics Land Systems’ domestic operations. He will be responsible for operational performance, execution and growth of the company’s domestic business sectors. Reporting to Whited will be the company’s Ground Combat Systems, U.S. Marine Corps/Navy, and Combat Support and Sustainment business sectors.
Whited previously served as General Dynamics Land Systems’ vice president of finance and chief financial officer since June 2006 and has nearly 30 years of experience in the Aerospace and Defense industry. He is a Certified Public Accountant and has a bachelor’s of science in Accounting from Wayne State University, Detroit. Prior to joining General Dynamics Land Systems, he served as the vice president of finance and chief financial officer for General Dynamics Ordnance and Tactical Systems and the controller for General Dynamics Advanced Information Systems.
Evelyn L. Milam replaces Whited as the company’s vice president of finance and chief financial officer. Milam joins General Dynamics Land Systems from General Dynamics Ordnance and Tactical Systems, where she was vice president of finance and chief financial officer since June 2006. She has held positions of increasing responsibility with General Dynamics since joining the company more than 22 years ago. Milam holds a bachelor’s degree in Business Administration from Southeast Missouri State University and a master’s degree in Business Administration from Southern Illinois University.
Mark C. Roualet, president, General Dynamics Land Systems, said, “As General Dynamics Land Systems continues to evolve our product and service offerings to meet our customers’ needs, it is essential we remain agile and responsive. Gary and Evelyn are well-suited to excel in helping us capitalize on those opportunities.”
General Dynamics Land Systems is headquartered here and employs approximately 9,300 worldwide, with 2,300 in southeastern Michigan. The company provides a full spectrum of land and amphibious combat systems, subsystems and components worldwide. Its strengths are world-class design and systems integration, superior production and innovative life cycle support. It is a business unit of General Dynamics (NYSE: GD), a market leader in business aviation; land and expeditionary combat vehicles and systems, armaments, and munitions; shipbuilding and marine systems; and mission-critical information systems and technology.
More information is available online at www.gdls.com and www.generaldynamics.com.
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FALLS CHURCH, Va. – General Dynamics (NYSE: GD) will present a live webcast of its investor conference on Thursday, Sept. 8, from 8:30 a.m. to 1 p.m. Eastern time.
The event will be hosted by General Dynamics Chairman and Chief Executive Officer Jay L. Johnson and will feature presentations by each of the company’s four operating group executives: David K. Heebner, executive vice president – Combat Systems; Phebe N. Novakovic, executive vice president – Marine Systems; Gerard J. DeMuro, executive vice president – Information Systems and Technology; and Joseph T. Lombardo, executive vice president – Aerospace.
Presentations will be webcast through a link at the company’s website, www.generaldynamics.com. A replay of the presentations will be available after the event.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 88,000 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at www.generaldynamics.com.
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LONDON, Ontario, Canada – General Dynamics Land Systems-Canada announced today that it will offer the PIRANHA 5 vehicle fitted with Rheinmetall’s LANCE 30mm Modular Turret System for the Government of Canada’s Close Combat Vehicle (CCV) Program. The goal of the CCV program is to deliver a well-protected armoured vehicle with very high tactical mobility, able to deliver an infantry section in close combat, while operating in intimate support of main battle tanks. In response, General Dynamics Land Systems-Canada is leading an all-Canadian team that leverages the best of the Canadian defence industry to deliver and support a vehicle that will meet those stringent requirements.
The PIRANHA 5 CCV is the latest evolution of the proven PIRANHA family of wheeled combat vehicles, incorporating the newest lethality, mobility, protection and communications technologies. It provides the best of both worlds, combining track-like performance with the strategic mobility of a wheeled platform. Advanced suspension technology allows the PIRANHA 5 CCV to go anywhere a medium-weight tracked vehicle can go with significantly lower fuel, maintenance and lifecycle costs.
Danny Deep, vice president of General Dynamics Land Systems-Canada, stated, “With the PIRANHA 5 CCV, Canadian soldiers will control the battlefield and fight, manoeuvre and communicate with agility and precise lethality. And they will do it in a vehicle that achieves the deployability and lifecycle cost benefits enjoyed by the rest of Canada’s wheeled combat vehicle fleet.”
Deep further stated, “With 35 years of experience in delivering and supporting vehicles that meet or exceed the requirements of the Canadian Army, General Dynamics Land Systems-Canada is committed to delivering to the Canadian soldier the best tools for the job and the best protection that we can give them. We know that our vehicles carry the soldiers we depend on to fight for the freedoms we cherish.”
General Dynamics Land Systems-Canada has assembled a powerful Canadian team for this program. General Dynamics Land Systems-Canada will be the prime contractor for the CCV program and will manufacture and assemble the PIRANHA 5 chassis at its facility in London, Ontario. Rheinmetall’s LANCE 30mm turret technology will be transferred to its Rheinmetall Canada facility in Saint-Jean-sur Richelieu, Quebec, for full turret production. Armatec Survivability Canada of Dorchester, Ontario, will augment the PIRANHA 5’s inherent protection with a survivability suite of advanced composite materials and the latest technology in energy-absorbing troop and crew seating, all designed and tested to meet rigorous blast, IED and kinetic-energy threats. The remainder of the team will be drawn from a supplier base of over 400 Canadian companies. This combined production effort offers a world-class vehicle built in Canada, by Canadians, to protect Canadians.
General Dynamics Land Systems, the Canadian company’s parent corporation, is a business unit of General Dynamics (NYSE: GD). For information about General Dynamics Land Systems–Canada, please visit www.gdlscanada.com.
More information about General Dynamics is available at www.generaldynamics.com.
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LONDON, Ontario, Canada – The U.S. Army TACOM Life Cycle Management Command has awarded a USD$49.2 million contract to General Dynamics Land Systems-Canada for training and field service support for Light Armored Vehicles (LAV) previously supplied under a Foreign Military Sale (FMS) contract. General Dynamics Land Systems, the Canadian company’s parent corporation, is a business unit of General Dynamics (NYSE: GD).
Support activities under this contract include the provision of field support teams to conduct operator and maintenance training, technical support and fleet status monitoring. The period of performance is for five years and will be completed by July 2016.
The contract was awarded through the Canadian Commercial Corporation, a Crown Agency of the Canadian Government.
For information about General Dynamics Land Systems, please visit www.gdls.com.
More information about General Dynamics is available at www.generaldynamics.com.
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General Dynamics Team Awarded Army Ground Combat Vehicle $440 Million Technology Development Contract
STERLING HEIGHTS, Mich. – A team led by General Dynamics (NYSE: GD) that includes Lockheed Martin (NYSE: LMT), Raytheon Company (NYSE: RTN) and Tognum America, Inc., was awarded a $439.7 million contract for the Technology Development (TD) phase of the U.S. Army’s Ground Combat Vehicle (GCV) Infantry Fighting Vehicle (IFV) program. The overall goal of the GCV IFV program is to develop and produce an affordable and operationally effective Infantry Fighting Vehicle in seven years.
“The General Dynamics team’s design is focused on delivering an affordable ground combat vehicle that provides optimal Soldier protection and operational effectiveness. Our design draws on affordable, mature technologies to provide protection, capacity for a nine-soldier squad, network interoperability, mobility and lethality that is unmatched by any existing infantry fighting vehicle,” said Steve Schultz, vice president, Ground Combat Vehicle Program for General Dynamics Land Systems.
“Our approach capitalizes on the proven ability and competencies of each team member to meet the requirements for an integrated next-generation fighting system,” Schultz said. “We are offering a balanced and affordable solution that meets the requirements of the U.S. Army.”
General Dynamics assembled a best-in-class team with unmatched experience and industry leading program management, systems engineering and technical expertise which resulted in an affordable and operationally effective solution. Together, this team provides a storied legacy of performance on contemporary ground combat vehicles.
“Our solution will provide a nine-Soldier squad an affordable protected mobile environment, mounted and dismounted connectivity, and superior lethality while providing the Army with the growth potential necessary to adapt the GCV IFV platform to the varied and evolving conditions of combat,” Schultz said.
The purpose of the 24-month GCV TD phase is to complete the preliminary design of the GCV and to reduce the risk of performance of the Engineering and Manufacturing Development phase of the program. Deliverables for this contract include the Rocket Propelled Grenade (RPG) Protection Subsystem Prototype, the Mine Blast Subsystem Prototype Test Article, technical documentation and associated data.
With more than 70 years of ground combat vehicle design, development, integration and sustainment experience, General Dynamics Land Systems leads the team as the prime contractor and has overall responsibility for program management, vehicle design and integration. General Dynamics also is responsible for vehicle structure and chassis, squad and crew environments and integrated survivability and safety.
Lockheed Martin has responsibility for the turret, lethal and non-lethal effects and embedded training. The company offers over 50 years of experience in systems integration and is a world leader in design and development of missiles and fire control systems.
Raytheon is responsible for the RPG protection system, indirect-vision and sensor integration. The company brings more than 40 years of combat sensor and systems integration experience in providing advanced situational awareness, target engagement and force protection capabilities for a variety of ground combat vehicles.
Tognum America has responsibility for the power pack, which comprises the engine, transmission and generator. Tognum is the premier provider of high-capacity diesel propulsion systems based on MTU engines. The company has over 100 years of proven integration experience in combat systems worldwide.
General Dynamics C4 Systems leads the network and communications integrated product team and has responsibility for network integration, communications, computing and information assurance. The company brings over 50 years of experience in the development of the some of the world’s most advanced command, control, communications and computing systems and information assurance.
Work is being done at General Dynamics Land Systems sites in Sterling Heights, Mich., and Lima, Ohio; Lockheed Martin in Grand Prairie, Texas; Raytheon in McKinney and Plano, Texas; General Dynamics C4 Systems in Scottsdale, Ariz., Taunton, Mass., and Fort Wayne, Ind.; and Tognum America in Detroit, Mich., Aiken, S.C., and Friedrichshafen, Germany.
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STERLING HEIGHTS, Mich. – General Dynamics Land Systems, a business unit of General Dynamics
(NYSE: GD), has been awarded two contracts with a combined value of $42.4 million for the Kingdom of Saudi Arabia’s tank program. The contracts were awarded by the U.S. Army TACOM Lifecycle Management Command on behalf of the Royal Saudi Land Forces. This work is part of a plan by the Kingdom of Saudi Arabia to upgrade its entire fleet of 314 Abrams tanks.
The contracts, valued at $12.6 million and $29.8 million, respectively, will provide materials and labor for the conversion of 102 M1A2 tanks to an M1A2S configuration. The M1A2S conversion will increase the efficiency and capability of the tank.
Current employees at the Joint Systems Manufacturing Center in Lima, Ohio will perform the work. The estimated completion of 60 tanks is expected by August 30, 2012, and 42 tanks will be finished by September 30, 2012.
This contract continues work started in 2008 to design, develop, convert, implement and test a hybrid configuration of the M1A1, M1A2 and M1A2 System Enhancement Package (SEP) tank variants for the Kingdom of Saudi Arabia.
More information about General Dynamics is available online at www.generaldynamics.com.
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FALLS CHURCH, Va. – The board of directors of General Dynamics (NYSE: GD) has elected James L. Jones to be a director of the corporation, effective August 3, 2011.
Jones, who is 67, served as the National Security Advisor to the President of the United States from January 2009 to November 2010. Previously, he was the United States’ special envoy for Middle East regional security.
Jones retired from the U.S. Marine Corps in 2007 after more than 40 years of service. From 1999 to 2003, he was the 32nd Commandant of the Marine Corps. After his service as commandant, Jones was Supreme Allied Commander, Europe (SACEUR), and Commander of the United States European Command (USEUCOM), positions he held until 2006.
“Jim Jones’ depth of knowledge and experience in global security issues makes him a valuable addition to the General Dynamics board,” said Jay L. Johnson, chairman and chief executive officer of General Dynamics.
Jones is currently president of Jones Group International, a global consultancy, and he serves on the boards of the Marine Corps Law Enforcement Foundation, the Center for Strategic and International Studies, the Atlantic Council of the United States, the East-West Institute, and the Bi-Partisan Policy Council.
Jones holds a Bachelor of Science degree and an Honorary Doctorate of Letters from Georgetown University. He is also a graduate from the National War College.
More information about General Dynamics is available online at www.generaldynamics.com.
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FALLS CHURCH, Va. – The board of directors of General Dynamics (NYSE: GD) today declared a regular quarterly dividend of 47 cents per share on the company’s common stock, payable November 10, 2011, to shareholders of record at the close of business on October 7.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 88,000 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available online at www.generaldynamics.com.
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LONDON, Ontario, Canada – General Dynamics Land Systems-Canada has been awarded a $42 million contract to produce 33 Light Armored Vehicles (LAV-A2) in various configurations for the United States Marine Corps. General Dynamics Land Systems, the Canadian company’s parent corporation, is a business unit of General Dynamics (NYSE: GD).
The LAV-A2 is a mobile, agile and survivable system for conducting offensive and defensive operations in support of the Marine Air-Ground Task Force. The eight-wheeled amphibious vehicle is equipped with enhanced armor protection and an automatic fire-suppression system for crew protection, as well as a robust suspension for mobility.
Vehicle production will be performed at the General Dynamics Land Systems-Canada operations in London, Ontario, and will be completed by December 2012. In total, 240 LAV-A2 vehicles have been ordered by the Marine Corps since 2007. Nearly 800 units of an earlier version of the Light Armored Vehicle entered service with the Marine Corps in the 1980s and continue operational deployment today.
The contract was awarded through the Canadian Commercial Corporation, a Crown Agency of the Canadian Government.
For information about General Dynamics Land Systems, please visit www.gdls.com.
More information about General Dynamics is available at www.generaldynamics.com.
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LONDON, Ontario, Canada – The U.S. Marine Corps Systems Command has awarded General Dynamics Land Systems–Canada a $41.6 million contract modification for the installation of upgrade kits for RG-31 Mk5E vehicles previously delivered under the Mine Resistant Ambush Protected (MRAP) vehicle program. General Dynamics Land Systems, the Canadian company’s parent corporation, is a business unit of General Dynamics (NYSE: GD).
Contracts to assemble the upgrade kits, which will enhance the survivability and operation of the RG-31 vehicles to the latest production configuration, were awarded earlier this year. Installation work will commence in August 2011 at the MRAP Sustainment Facility in Kuwait and will be completed by October 2012.
The contract was awarded through the Canadian Commercial Corporation, a Crown Agency of the Canadian Government.
For information about General Dynamics Land Systems, please visit www.gdls.com.
More information about General Dynamics is available at www.generaldynamics.com.
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) Chairman and Chief Executive Officer Jay L. Johnson will speak at the Sanford C. Bernstein 27th Annual Strategic Decisions Conference in New York on Friday, June 3, 2011, at 8 a.m. ET.
General Dynamics will provide a live webcast of the presentation via www.generaldynamics.com. A replay will be available after the live presentation.
More information about General Dynamics is available online at www.generaldynamics.com.
FALLS CHURCH, Va. – The board of directors of General Dynamics (NYSE: GD) today declared a regular quarterly dividend of 47 cents per share on the company’s common stock,
payable August 5, 2011, to shareholders of record at the close of business on July 1.
The board also authorized management to repurchase up to 10 million shares of the company’s issued and outstanding common stock on the open market.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 90,000 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies.
More information about the company is available on the Internet at www.generaldynamics.com.
ADELAIDE, SA, Australia – General Dynamics Land Systems-Australia (GDLS-A), a business unit of General Dynamics Land Systems-Canada in London, Ontario, received a five year, AU$44.8m Through Life Support contract today. The contract also includes a one year phase-in period.
The Through Life Support services will deliver enhanced fleet availability of the Army’s ASLAV wheeled armoured fighting vehicles, M1A1 Abrams tanks, and M88A2 Heavy Recovery vehicles. Ongoing spare parts, repairs, maintenance and engineering tasks will be ordered as required through this integrated support contract. It also provides the opportunity for stronger relationships with the Commonwealth and local industry.
The contract will change the mechanisms and business processes between the Commonwealth and General Dynamics in Australia to improve efficiency, reduce costs and promote value. The contract also includes the implementation of a performance management framework for the services, which contributes toward the Commonwealth Strategic Reform Program (SRP). This provides the basis for awarding up to 15, one-year contract extensions based on performance. The low risk Through Life Support solution is founded on local and experienced capability; leveraging the full range of original equipment manufacturer engineering, technical support network and product service centres.
Gary Stewart, Managing Director of General Dynamics Land Systems - Australia, said the performance-based contract provides an adaptable framework to ensure sustainable, dependable and high quality service delivery.
“We have leveraged our extensive experience in implementing and executing performance-based support contracts for other customers, which has enabled us to incorporate attributes such as cost transparency, continuous improvement and application of lean initiatives,” Stewart said. “Our service delivery model is flexible, enabling effective change and ongoing service delivery in response to the Commonwealth’s constantly changing operational and support environments.”
Stewart added that the contract enables the repair, maintenance and upgrade of combat vehicle fleets to remain a strategic industry capability within Australia.
“The long range focus of this program also presents the opportunity for Australian industry to participate in General Dynamics’ global supply chain,” Stewart said. “We look forward to engaging with Australian companies as part of our design, manufacturing and sustainment transfer initiatives for this contract and other programs.”
More information about the company is available at www.gdlsaustralia.com.
Company expands development of anti-submarine warfare, mine avoidance and mine counter
measures as global requirements increase.
OTTAWA, ON — General Dynamics Canada, a pioneer in the development of underwater acoustic processing systems, today announced the creation of a new Underwater Intelligence, Surveillance and Reconnaissance (UW ISR) Centre of Excellence. The latest in a series of initiatives made to reinforce General Dynamics Canada’s underwater ISR technical and product leadership, the Centre is designed to accelerate the company’s research and product development efforts as naval fleets around the world look to reestablish this critical capability in the face of new threats. According to Bob Nugent, vice president at naval market research and analysis firm AMI International, national security and economic stability are driving investment in new ship and submarine fleets that require underwater submarine warfare capability. “Global demand for submarines and associated ISR capabilities vital to providing effective deterrence is increasing. As an example, more submarines will be built or bought by Asian-Pacific navies over the next 20 years compared to any other region in the world.”
Located in Halifax, Nova Scotia, close to key Canadian military naval and air bases, the General Dynamics UW ISR Centre of Excellence will leverage the company’s strong collaborative relationship with Defence Research and Development Canada – Atlantic (DRDC Atlantic), a globally-renowned defence research centre with world-leading expertise in anti-submarine warfare and mine and torpedo defence systems. Today’s announcement also builds on the company’s 2009 partnership agreement with Marport C-Tech Ltd., a leading sonar manufacturer, to jointly develop and market a suite of next-generation underwater acoustic products to support underwater military ISR missions.
“Underwater ISR capabilities are critical to the success of today’s littoral naval missions,” said David Ibbetson, general manager of General Dynamics Canada. “The General Dynamics Canada UW ISR Centre of Excellence will enable us to collaborate, innovate and accelerate the development of solutions to ensure naval personnel have the appropriate tools and information to sense and respond to underwater threats when they need them.” The General Dynamics Canada UW ISR Centre of Excellence will be integrated into the company’s stateof-the-art 46,000 square foot facility in Halifax, which opened in 2008. The centre will be staffed by an integrated team of hardware and software engineers and experts in underwater acoustics and naval sonar operations. The team’s initial focus will be further development of the company’s flagship acoustic products. Those include the MATADOR Torpedo Detection System and the TrailBlazer Mine and Obstacle Avoidance Sonar, a joint development effort between General Dynamics Canada and Marport.
The MATADOR Torpedo Detection System is an acoustic processing system optimized for torpedo detection and designed to be used with towed array sensors. The system’s open architecture and flexible interface allow it to be configured to work seamlessly with a range of sensors, taking advantage of their unique capabilities. Integrated within the system are sonar detection displays that provide operators a single-view summary of all acoustic data collected, as well as tools to allow rapid detection of torpedo signatures, accurate identification of torpedo bearings, and an interface for managing torpedo alerts and alarms. TrailBlazer is a high-frequency, high-resolution sonar system designed for mine and obstacle avoidance (MOAS) on patrol vessels, corvettes, frigates and destroyers operating in littoral waters. It detects surface, moored and seabed mines, and provides high-resolution, real-time, 3-D, forward-looking sonar capability for safe navigation. In addition, it provides shallow-water hydrographic feature detection, which displays high-resolution images of small seabed features to operators for future examination.
General Dynamics Canada is a premier provider of defence electronic systems and a leading systems integrator of complete Command, Control, Communication, Computing, Intelligence, Surveillance and Reconnaissance (C4ISR) solutions. The company has established an international pedigree for excellence in the production of technology-based, integrated solutions for land, airborne and maritime applications.
More information about the company is available at: www.gdcanada.com.
More information about General Dynamics is available at www.generaldynamics.com.
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FALLS CHURCH, Va. – General Dynamics (NYSE: GD) will webcast its first-quarter 2011 financial results conference call on Wednesday, April 27, beginning at 9 a.m. Eastern Time.
Jay L. Johnson, chairman and chief executive officer; Hugh Redd, senior vice president and chief financial officer; and Amy Gilliland, staff vice president for investor relations, will review financial results for the first quarter of 2011 and will answer questions from financial analysts.
The live webcast of the conference call will be available at www.generaldynamics.com. A replay will be available shortly after the live presentation.
More information about General Dynamics is available online at www.generaldynamics.com.
WHAT: At the U.S. Navy League’s Sea-Air-Space Exposition, General Dynamics will showcase
platforms and technologies with the speed, agility, flexibility and sustainability required by
the Navy’s current and future forces to respond globally – at sea and ashore.
WHEN: April 11-13, 2011
Visit www.seaairspace.org for show hours and entrance information.
WHERE: Booth 900
Gaylord National Resort & Convention Center
201 National Street
National Harbor, Md.
Featured products and programs include:
Virginia Payload Module: General Dynamics Electric Boat will display its concept for an affordable recapitalization of the SSGN fleet. The Virginia Payload Module (VPM) comprises four additional large-diameter payload tubes in a module inserted amidships in Virginia-class submarines, increasing the fixed strike capacity by more than 230 percent per ship. The largediameter payload tubes will also leverage investment in SSGN payloads over more ships.
Combat Systems for Independence-class Littoral Combat Ships (LCS): As the systems integrator for the Independence-class LCS, General Dynamics Advanced Information Systems is responsible for the design, integration and testing of the ship's combat and seaframe control systems. These systems are built on General Dynamics’ open computing infrastructure (OPEN CI), ensuring that innovative and affordable technologies can be seamlessly integrated in rapid, spiral development cycles. This approach provides flexibility with faster integration of mission-specific technology; affordability by dramatically lowering acquisition and lifecycle costs; and enhanced capability to support current and future missions. The application of leading-edge technologies, such as “any display anywhere,” reduces manpower and enables the rapid delivery of new, powerful capabilities to the fleet throughout the life of the ship.
Common Display System (CDS): With a CDS production unit in the booth, General Dynamics will demonstrate the display console’s modular, flexible and multi-level secure approach. CDS allows sailors to access various applications at different classification levels from any console. By simultaneously displaying information classified at multiple security levels, the number of required systems onboard a ship is decreased, reducing costs and maintenance requirements. CDS is one of the first systems to fully implement the U.S. Navy’s information assurance and security requirements. It is built on an open
architecture display system, designed to ensure interoperability and enable frequent technology updates.
Axsys High-performance Camera Systems: General Dynamics Advanced Information Systems will feature its medium- and long-range electro-optical infrared (EO/IR) cameras. The innovative IR sensor technology and true high-definition daylight sensors capture high-intensity target signatures, even in the harshest environments. With exceptional stabilization, unmatched range performance and rugged reliability, these multi-sensor systems quickly and accurately detect, recognize and identify targets at sea, on land and from the air.
MK46 Weapon Station: The MK46 features the high-velocity 30mm cannon and a thermal day/night sight. A product of General Dynamics Amphibious Systems, the remotely operated turret provides close-in protection for surface ships.
More information about General Dynamics is available at www.generaldynamics.com.
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LONDON, Ontario, Canada – The U.S. Marine Corps Systems Command has awarded General Dynamics Land Systems–Canada three delivery order modifications valued at USD$41.4 million for upgrade kits for RG-31 Mk5E vehicles previously delivered under the Mine Resistant Ambush Protected (MRAP) vehicle program. General Dynamics Land Systems, the Canadian company’s parent corporation, is a business unit of General Dynamics (NYSE: GD).
The kits will enhance the survivability and operation of the RG-31 vehicles to the latest production configuration. The delivery of the kits is expected to be completed by January 2012. The contracts were signed through the Canadian Commercial Corporation, a Crown Agency of the Canadian Government.
For information about General Dynamics Land Systems–Canada, please visit www.gdlscanada.com.
More information about General Dynamics is available on the Internet at www.generaldynamics.com.
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FALLS CHURCH, Va. – The board of directors of General Dynamics (NYSE: GD) has elected Mary T. Barra to be a director of the corporation, effective March 15.
Barra, age 49, is the senior vice president of Global Product Development for General Motors Company (NYSE: GM), one of the world’s largest automakers. In that position, Barra leads the design, engineering, program management and quality of vehicles for the company’s 11 brands around the world, and is a member of the company’s Executive Committee.
Previously she was vice president of Global Human Resources, leading GM’s human resources worldwide. Prior to that appointment she was vice president, Global Manufacturing Engineering. Barra has also held a number of engineering and staff positions, including plant manager, Detroit Hamtramck Assembly Plant; executive director of Competitive Operations Engineering; and general director of Internal Communications for GM North America.
“As a manufacturing-based company, we welcome the insight that Mary will bring to the board from her broad experience in manufacturing, engineering and innovation,” said Jay L. Johnson, chairman and chief executive officer of General Dynamics.
Barra holds a Bachelor of Science degree in electrical engineering from General Motors Institute (Kettering University) and a master’s degree in Business Administration from the Stanford Graduate School of Business. She is a director of the Michigan-based Inforum Center for Leadership and a trustee of Kettering University.
General Dynamics, headquartered in Falls Church, Va., employs approximately 90,000 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available online at www.generaldynamics.com.
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FALLS CHURCH, Va. – The board of directors of General Dynamics (NYSE: GD) today declared a regular quarterly dividend of 47 cents per share on the company’s common stock, payable May 6, 2011, to shareholders of record on April 8. The dividend represents a 12 percent increase from the previous quarterly dividend of 42 cents per share.
General Dynamics, headquartered in Falls Church, Va., employs approximately 90,000 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available online at www.generaldynamics.com.
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STERLING HEIGHTS, Mich. – General Dynamics Land Systems has appointed Joanne F. Cavanaugh director of its Maneuver Collaboration Center, or mc², effective February 28. She will be responsible for all aspects of mc² management and operations to accelerate product improvement through collaboration and innovation. She will act as General Dynamics Land Systems’ lead interface and key advocate for the mc² community.
Cavanaugh has worked at General Dynamics Land Systems for six years, during which she has held positions in its Engineering, Design and Technology and the Ground Combat Systems organizations. In her most recent position, she served as program manager for the Stryker Production 8 Programs. She holds a bachelor’s degree in Mechanical Engineering from the United States Military Academy at West Point.
"Joanne's experience as an Army officer, West Point engineer and program manager make her an outstanding choice to lead the Maneuver Collaboration Center," said Sonya F. Sepahban, senior vice president of Engineering, Design and Technology, General Dynamics Land Systems, where mc² reports. "I am confident that under her leadership, the mc² team will continue to make great strides in broadening our access to innovative solutions, as well as fast tracking collaboration, end-to-end evaluation and fielding of these solutions to improve our combat vehicles and save lives."
Building on General Dynamics Land Systems’ strong foundation of systems engineering and integration, the mission of the mc2 is to create a collaborative environment to foster innovative solutions and enable rapid transition of mature technologies into vehicles and programs to address the Armed Forces’ immediate needs.
More information about General Dynamics is available on the Internet at www.generaldynamics.com. Details on the mc² can be found at www.gdls.com/mc2.
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Exhibit highlights include:
WHAT: At the 2011 International Defense Exhibition and Conference (IDEX), General Dynamics will exhibit a wide array of weapons systems and technologies that support Allied Forces through unprecedented survivability, connectivity, mobility and lethality.
WHEN: February 20-24, 2011
Visit www.idexuae.ae for hours and admissions information.
WHERE: 2011 International Defense Exhibition and Conference (IDEX)
Abu Dhabi National Exhibition Centre
Abu Dhabi, United Arab Emirates
Pavillion 04-A10 and Pavillion 03-B13
Pavillion 04-A10
General Dynamics European Land Systems: Headquartered in Vienna, General Dynamics European Land Systems has operating units in Spain, Germany, Austria and Switzerland. It designs, manufactures and delivers land combat systems to global customers, including wheeled, tracked and amphibious vehicles, armaments and munitions. The company is displaying:
General Dynamics Land Systems: Offering a spectrum of design, production and life-cycle support, Land Systems is a leading manufacturer of wheeled, tracked and amphibious combat vehicles. Land Systems employs world-class manufacturing and systems integration processes to develop vehicles designed to meet future ground combat requirements. The company is featuring:
General Dynamics United Kingdom: As a prime contractor and complex systems integrator, General Dynamics United Kingdom works in partnership with the UK's Ministry of Defence and other allies to deliver command, control, communications, computers and intelligence systems such as Bowman. The company possesses the technical leadership, manufacturing expertise and contract management skills to deliver future network-enabled battlespace capabilities. Featured displays include:
The company is showcasing its Axsys Technologies portfolio of high-performance electro-optical surveillance systems (EOSS) that allow users to quickly and accurately detect, recognize and identify targets with unparalleled clarity, accuracy and reliability. The products on display include:
General Dynamics C4 Systems: A leading integrator of secure communications, information systems and technology, General Dynamics C4 Systems specializes in command and control, communications, networking, space systems, computing and information assurance for defense, government and select commercial customers in the United States and abroad. Displays include:
General Dynamics Ordnance and Tactical Systems: Combining proven development and production capabilities with advanced research, General Dynamics Ordnance and Tactical Systems offers the U.S. military and its allies a range of combat systems, large-, medium- and small-caliber munitions, mortar weapons, artillery projectiles, bomb bodies, Ball Powder® propellant, solid propellants, non-lethal products and force protection products. Displays featured include:
Pavilion 03-B13
General Dynamics Armament and Technical Products: As a systems integrator of defense products for the U.S. military and over 30 allied nations, General Dynamics Armament and Technical Products designs and produces high-performance weapons and armament, biological and chemical detection systems, defensive armor, countermeasures, aerospace composites and off-road axles and suspensions. The company is displaying:
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Exhibit highlights include:
WHAT: At the 2011 Association of the U.S. Army’s Winter Symposium, General Dynamics is featuring technologies that support America’s soldiers through unprecedented survivability, connectivity, mobility and lethality.
WHEN: February 23 – 25, 2011
Visit www.AUSA.org for symposium hours and admissions information.
WHERE: Association of the U.S. Army (AUSA) Winter Symposium and Exhibition
Broward County Convention Center
1950 Eisenhower Boulevard
Fort Lauderdale, Florida 33316
Booth #1022 General Dynamics Combat Systems
Booth #723 General Dynamics Information Systems and Technology
Booth #1022 General Dynamics Combat Systems
Maneuver Collaboration Center (mc2): General Dynamics’ mc2 enables unprecedented collaboration between our world-class engineers, teammates, suppliers, customers, academia and the Warfighter. By leveraging our strong system engineering and integration processes, skills and tools, we are rapidly identifying, accessing and implementing innovative, timely and affordable solutions for the Warfighter. Technologies that have matured into customer-ready solutions through mc2 will be featured, along with solutions that are currently working their way through the process.
Reactive Armor – Stryker and Bradley Fighting Vehicle: General Dynamics Armament and Technical Products, in conjunction with Rafael Advanced Defense Systems Ltd., has developed the second generation, light-weight reactive armor tile system for Stryker and other medium/light-weight combat vehicles. Stryker reactive armor tiles incorporate state-of-the-art technology while utilizing an insensitive, high-energy explosive. The Bradley Fighting Vehicle System includes a reactive armor skirt to increase overall protection levels without exceeding vehicle weight limits. Reactive armor offers a substantial increase in protection levels for troops and equipment against shaped-charge threats.
M2A1: General Dynamics Armament and Technical Products’ M2A1 machine gun is an improved 12.7mm weapon, following the company’s 30 years of experience manufacturing the M2HB machine gun. The M2A1 offers the proven performance and in-place logistics support of the existing M2HB machine gun, along with new features and design improvements of the Quick Change Barrel (QCB) system. The QCB has a fixed headspace and timing, flash hider and the ability to exchange barrels in combat operations. These upgrades will increase the performance of the battle-proven M2 gun and can be retrofitted to existing M2HB weapons.
MK19 and the 40mm Grenade Launcher Improvement Kit: The MK19 crew-served 40mm grenade machine gun provides lethal fire against a variety of targets, including lightly armored vehicles and dismounted infantry. In 2008, General Dynamics developed the 40mm Grenade Launcher Improvement Kit for increased accuracy. The kit includes the fire control system, soft mount and tripod. The MK19 can fire up to 400 rounds per minute with a maximum effective range of 1,650 yards.
Multi-Purpose Rifle System: The Multi-Purpose Rifle System (MPRS) provides the infantry warrior with increased lethality, enhanced target incapacitation and suppression through the use of an integrated ballistic fire control computer and high-explosive airburst munitions. The MPRS improves individual warrior and squad performance on the modern digital battlefield and can be embedded within any existing assault rifle, using a 40mm launcher.
Independent Suspension Planetary Axle System: AxleTech International, a General Dynamics company, will showcase its state-of-the-art independent suspension planetary axle systems (ISAS™) for applications requiring high-mobility and maneuverability. The double-wishbone design provides unrivaled ride control and handling with superior cross-country mobility and safety in all operating environments. The system is designed for both commercial and military applications, including the BAE Systems’ RG31 Mine Protected Vehicle and Navistar MaxxPro Dash Mine-Resistant Ambush Protected vehicle.
Booth #723 General Dynamics Information Systems and Technology
Area Processing Center: A containerized, helicopter sling-transportable data center, the Area Processing Center (APC) is designed specifically for the warfighter in tactical and enterprise scenarios. The center is built ‘from the ground up’ based on the user’s needs and incorporates a modular design emphasizing functionality that is flexible in execution and scalable to any capacity requirement.
On-the-move Micro Kit: The Micro Kit enables command, control, communications and computing (C4) capabilities in a wide range of tactical vehicles. It is lightweight, power-efficient and uses less hardware to deliver more computing capabilities, virtualization and C4 applications for U.S. military, Joint and Coalition forces.
WIN-T Network Management System: The WIN-T Network Management System (NMS) is the authoritative program of record system that is used to plan and engineer tactical communications networks. It provides an integrated planning construct while maintaining interfaces to domain-specific configuration and control capabilities.
Dismounted Company Command Post: This lightweight, battery and solar-powered ‘network in a suitcase’ enables Internet Protocol (IP) voice and data communication capabilities to the Company level and below, operating in remote or isolated areas.
ProtecD@R™ Family of Data-at-Rest information encryptors: The newest line of information security products, the General Dynamics ProtecD@R encryptors secure data stored in tactical smartphones, computer workstations, laptops and other equipment with sensitive information that must be protected when idle or powered off.
Secure communications products: Secure all voice and data communications on multiple levels, from the network to the desktop to the individual. Demonstrations include the Sectéra® vIPer™ Universal Secure Phone, a cost-effective STU/STE replacement providing the latest technology for secure, end-to-end Voice over IP and PSTN networks; the Sectéra Edge™ Smartphone, the first Secure Mobile Environment Portable Electronic Device (SME PED) certified by the NSA for Type 1 use; and TVE a software application that allows users to access multiple security levels and domains from a single computer.
Joint Tactical Radio System Handheld, Manpack and Small Form Fit Rifleman Radio : In a live demonstration, a three-node network using the Rifleman Radio (AN/PRC-154) and GD300 rugged wearable computer connects dismounted soldiers, their leaders and headquarters. For the demonstration, the Rifleman Radio will use the Soldier Radio Waveform to run communications applications like Command Post of the Future (CPOF), Internet-based chat and the Tactical Ground Reporting System (TIGR).
Tactical and Vehicle-Rugged Computing Solutions: Computers, workstations, servers, network hardware equipment, transit case solutions and peripheral devices available through the Common Hardware/Software III (CHS-3) contract including the Multi-Domain ATLAS rugged vehicle computing platform and BCCs V3 Operational Transit Case Assembly.
General Dynamics Itronix laptop products: We will display fully rugged laptops, notebooks, ultra-thin clients, handheld and wearable computers including the GD300 rugged, wearable computer and Tadpole® product line.
Vehicle-Rugged Smart Displays: Currently being fielded on Stryker, Bradley and Mine Resistant Ambush Protected fleets, General Dynamics Canada’s rugged computing and smart display technologies combine to deliver secure accessibility to information including situational awareness, GPS, maps, even videos, for commanders and others working aboard combat and tactical vehicles.
Imagery Solutions: General Dynamics will demonstrate its mission solutions across the imagery value chain, including our high-performance camera systems and ruggedized data storage systems. The real-time intelligence gathered from these systems allows Soldiers and leadership to confront challenges with greater confidence and agility.
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FALLS CHURCH, Va. – General Dynamics (NYSE: GD) Chairman and Chief Executive Officer Jay L. Johnson will speak at the Cowen and Company 32nd Annual Aerospace/Defense Conference in New York on Wednesday, February 9, 2011, at 9:50 a.m. ET.
General Dynamics will provide a live webcast of the presentation via www.generaldynamics.com. A replay will be available after the live presentation.
More information about General Dynamics is available online at www.generaldynamics.com.
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FALLS CHURCH, Va. – The board of directors of General Dynamics (NYSE: GD) yesterday authorized management to repurchase up to 10 million shares of the company’s issued and outstanding common stock on the open market.
General Dynamics, headquartered in Falls Church, Va., employs approximately 90,000 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about General Dynamics is available online at www.gd.com.
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STERLING HEIGHTS, Mich. - General Dynamics Land Systems, a business unit of General Dynamics (NYSE: GD), was recently awarded two contracts worth $44 million for the Kingdom of Saudi Arabia’s tank program. The contracts were awarded by the U.S. Army TACOM Lifecycle Management Command on behalf of the Royal Saudi Land Forces. This work is part of a plan by the Kingdom of Saudi Arabia to upgrade its entire fleet of 314 tanks. The first contract of $37.1 million is to provide materials and labor for the conversion of 42 M1A2 tanks to an M1A2S configuration for the Kingdom. The M1A2S will possess defined capabilities that increase lethality while limiting obsolescence. The conversion work will be performed by current employees at the Joint Systems Manufacturing Center in Lima, Ohio, with an estimated completion date of September 20, 2012.
The second contract, worth $6.9 million, will provide the tools and equipment needed to outfit a production facility in Saudi Arabia for future conversion of M1A2 tanks to the M1A2S version. Work will be performed in Sterling Heights, Mich., with an estimated completion date of August 1, 2012. These contracts extend work started in 2008 to design, develop, convert, implement and test a hybrid configuration of the M1A1, M1A2 and M1A2 System Enhancement Package (SEP) tank variants for the Kingdom of Saudi Arabia.
More information about General Dynamics is available online at www.generaldynamics.com.
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The House Armed Services Committee's new Republican chairman, Buck McKeon, called them "drastic" and "dangerous." Left-leaning critics said they did not go far enough.
That suggests Gates has it about right as he attempts to cut overhead to save money while modernizing the force and making a bloated DoD more agile and efficient.
Gates' sought $101 billion in savings over five years for personnel and new equipment on a largely flat base budget. The White House pushed for more. Gates found another $54 billion. The White House took half, leaving the rest to pay for people and new bombers, F-18 fighters, remotely piloted planes, ships and rockets plus upgrades to F-15 fighters, M1 tanks, Bradley and Stryker vehicles.
Given the U.S. debt crisis, it's not unreasonable to ask DoD to stop squandering resources on unnecessary people, functions and organizations.
It's unclear whether Gates can pull off this balancing act. The savings are on paper, but DoD's challenge would have been tougher if he hadn't pushed hard for savings for new priorities.
His most important decision was to begin work immediately on a new, optionally manned, long-range, stealth bomber weeks after China unveiled its new stealth fighter and days before he planned a visit to Beijing. The work is vital for the U.S. combat aircraft industrial base and makes clear that Gates isn't focused on today's wars at the expense of future needs.
Delaying the short-takeoff-and-vertical-landing variant of the F-35 from first to last in service, giving the program two years to sort out its problems, was correct. So was allowing the Air Force to buy more Evolved Expendable Launch Vehicles to support the rocket industrial base.
His cancellation of the Marines' Expeditionary Fighting Vehicle is more problematic. While the Marines got to keep their cherished forced-entry mission, they lost the vehicle they saw as key to their future. Gates said it's unaffordable, too complex and vulnerable to evolving threats.
Instead, existing Amphibious Assault Vehicles would be upgraded for $2 billion, and a New Amphibious Vehicle developed for $1 billion. It's fair to ask if buying half as many EFVs for about $4 billion makes more sense. The lesson is weapons need to be developed more quickly and less ornately, with less starting and stopping programs at great cost and little result.
DoD must change its sluggish and wasteful culture. With debt reduction a top Washington priority, money is tight. Even if DoD's topline budget remains flat, rising personnel, pay and benefits costs and inflation will further squeeze internal accounts. There is still much to save before starting to spend more.
Savings can still be squeezed by continuing to scrub missions, personnel and programs. Do jobs need doing, and should uniformed, civilian or contractor personnel be doing them? Pay, personnel and benefit reforms are vital to avoid being left with a smaller military of ever more highly compensated personnel.
Gates has again gotten in front to shape DoD's future but can't succeed without Congress. Lawmakers have an obligation to question his proposals but must not dismiss them out of hand or for partisan motives. The trick is to deliver savings while improving agility and capabilities, and in that, there is much room for improvement.