Textron unit to produce more vehicles for Army

Textron Inc. said Monday that a subsidiary signed a new base contract to produce 423 additional armored vehicles for the U.S. Army, raising the value of the contract to $461 million.

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The deal includes potential options for up to 272 more M1117 and M1200 vehicles, for an additional $239 million.

Textron said its Marine & Land Systems unit has delivered 2,600 armored vehicles to the Army.

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The company said it would start delivering the extra vehicles in October and continue into early 2012 if all options are exercised. The $461 million total for the reworked contract covers 256 vehicles under the original base contract plus the additional 423, according to a Textron spokesman.

Textron shares rose $2.01, or 9.9 percent, to close at $22.39.