General Dynamics secures $17.65 billion contract

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Associated Press

Posted on April 28, 2014 at 4:01 PM

Updated Monday, Apr 28 at 11:01 PM

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

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

Construction of the first submarine will begin May 1.

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

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

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

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