Jim McAleese, founder and principal atÂ McAleese & Associates and aÂ 2019 Wash100 winner, wrote in the report that the increase was primarily driven by $3.7B in new sales associated with the companyâs acquisition of CSRA in April.
The Falls Church, Va.-based aerospace and defense contractor expects its 2019 capital expenditure to increase to $1.2B, or approximately 3 percent of 2019 sales, primarily targeted at General Dynamics Electric Boatâs development work on Columbia-class and Virginia-class submarines.
âWe continue to invest in each of our yards, with particular emphasis at Electric Boat, to prepare for increased production associated with the Block V of the Virginia-submarine program and the new Columbia ballistic-missile submarineâ¦Block V is a significant upgrade in sizeâ¦requiring additional manufacturing capacity,â General Dynamics CEO Phebe Novakovic said during the companyâs earnings call on Jan. 30.
â[W]e have also increased our internal training program, as well as our public/private partnership with Connecticut and Rhode Island, to meet our need for skilled trade,â added Novakovic, a 2019 Wash100 recipient.
General Dynamicsâ marine systems sector saw its 2018 revenue rise 6 percent to $8.5B and recorded an 11 percent increase in operating profit and a 9 percent jump in operating margin.
âFor 2019, we again expect the marine segment to command a larger share of our capital budget, as we work toward satisfying the nationâs need for its critical naval systemsâ¦We are poised to support our Navy customer, as they increase the size of the fleet,â Novakovic said.
The report noted that the companyâs mission systems sector saw its revenue grow 6 percent to $4.7B, while the information technologyÂ business reported $8.3B in 2018 sales, up 88 percent from the 2017 figure.
According to the firmâs financial results, the combat systems segmentâs 2018 revenue rose 5 percent to $6.2B attributed to a $335M prototype development contractÂ under the U.S. Armyâs Mobile Protected Firepower program as well as awards related to additional Stryker double-V-hull vehicles and M1A2 Abrams tank upgrades.