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General Dynamics Corporation (GD - Free Report) won a $9.5 million contract through its business wing, General Dynamics Electric Boat.

This is an agreement modification received from the U.S. Navy to plan and perform maintenance and modernization work on its Los Angeles-class attack submarine, the USS Hartford (SSN-768).

The latest deal calls for Electric Boat to carry out a dry-docking selected restricted availability at the company's Groton shipyard. The operation will likely be finished by September and generate over 400 jobs at its peak level. The contract was originally awarded in April last year with a potential value of $67 million.

Based in Falls Church, Va., General Dynamics engages in mission-critical information systems and technologies; land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation.

Over the years, General Dynamics has a long-standing business association with the U.S. Navy. The company’s order backlog at the end of fourth-quarter 2012 was a healthy $17.1 billion. Its diversified business operations also help to keep the growth rate stable.

As the U.S. Department of Defense is one of the key customers of General Dynamics, any further U.S. defense budget cutback could limit the company’s future growth prospects. We believe this is one of the main reasons for the drop in Marine Systems Group’s total backlog by 7.6% year over year to $17.1 billion in fourth-quarter 2012. Hence, uncertainty related to defense budgets and the U.S. debt situation remains an overhang for the company.

Presently, General Dynamics carries a Zacks Rank #4 (Sell). Other stocks worth considering are Zacks Ranked #2 (Buy) Wesco Aircraft Holdings, Inc. (WAIR - Free Report) , FLIR Systems, Inc. (FLIR - Free Report) and Triumph Group, Inc. (TGI - Free Report) .

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