BAE Systems receives $535m contract with US Army

(Sharecast News) - Defence, aerospace and security solutions giant BAE Systems has announced a new contract worth $535m to produce howitzers and tanks for the US Army. Supplying the Army's Armored Brigade Combat Team formation, BAE will produce additional M109A7 Paladin Self-Propelled Howitzers and M992A3 Ammunition Carriers.

"BAE Systems continues to strengthen its role across the defense industrial base through ongoing self-investments in advancing artillery capabilities, expanding manufacturing capacity and driving operational excellence," the company said in a statement.

"These efforts reflect the company's unwavering commitment to the innovation, reliability and mission success of the M109A7 Paladin program, to meet the evolving needs of the U.S. Army."

BAE Systems was trading 2.3% higher at 1,863p by 1600 BST.