The U.S. Navy awarded two contracts this week to Huntington Ingalls Industries and General Dynamics Bath Irons Works to build up to 10 new destroyers.
Huntington Ingalls has been awarded a $3.33 billion contract to build five Arleigh Burke-class destroyers known as DDG 51s. The contract includes options for engineering change proposals and other items that could bring the total value of the contract up to $3.39 billion if exercised.
The Pascagoula, Miss., company said that it has a strong history of building the DDG 51 class of ships. Ingalls has already delivered 28 DDG 51 destroyers to the Navy and currently has two more under construction.
The Arleigh Burke-class destroyer that is used to defend against a wide range of threats, including ballistic missiles.
General Dynamics Bath Irons Works was awarded a $2.8 billion contract to build four Arleigh Burke-class destroyers, with an option for a fifth ship. If the fifth ship is built, it would bring the total value of the contract to approximately $3.5 billion.
The company said the contract adds to its workload in a "fiscally challenging and highly competitive environment" and said that it provides a clearer picture for the company's near-term future. The company currently is working on two DDG 51 destroyers, among other projects.
General Dynamics Bath Iron Works, based in Bath, Maine, is a unit of General Dynamics.
Shares of General Dynamics fell 36 cents to close at $77.21. Huntington Ingalls shares added 41 cents to close at $54.87.
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