McAleese & Associates has provided an overview of General Dynamics’ (NYSE: GD) financial results in the third quarter of 2018.
The Falls Church, Va.-based defense contractor’s mission systems sector reported a 13 percent increase in Q3 sales with an operating margin of 14.6 percent, reflecting an 18 percent growth in sector profit during the quarter.
Jim McAleese, founder and principal at McAleese & Associates, wrote in the report that the company is “ecstatic” about Bath Iron Works subsidiary’s potential $3.9B multi-year contract with the U.S. Navy for four DDG-51 guided-missile destroyers.
“GD is happy to build fewer lower-risk/higher-profit DDG-51 ships; to avoid any potential of marring Electric Boat’s shining-decade of upcoming $96B of Columbia-class SSBN construction,” McAleese noted.
The report said the company also declared that it will honor its $1.7B capital expenditure commitment for the construction of the Columbia-class submarine.
General Dynamics saw its revenue rise 20 percent year-over-year to approximately $9.1B and recorded $864M in earnings from continuing operations during the third quarter, up 13.1 percent from the prior-year period.