Phebe Novakovic, chairman and CEO of General Dynamics (NYSE: GD) and a seven-time Wash100 Award winner, said the Reston, Virginia-based aerospace and defense contractor is not seeing supply chain challenges driven by the COVID-19 pandemic as having major impacts on the company’s performance, the Washington Business Journal reported Wednesday.
“Across the portfolio of our defense businesses, we are not seeing significant, or even material supply chain challenges,” Novakovic told analysts Wednesday during the company’s earnings call. “So we’ve been able to manage through that pretty well. For us, and I can only speak for us, it hasn’t been a significant issue.”
Novakovic said the company also sees an opportunity in supporting customers in the area of cybersecurity.
“From an opportunity perspective, cybersecurity is a top priority throughout the government, and the budget calls for tens of billions of dollars in unclassified spending in both the defense and civilian spaces,” she said. “This is a significant opportunity for which we are well-positioned to support our customers’ needs, particularly as more and more customers move toward a zero trust model.”
General Dynamics recorded $9.6 billion in revenue during the third quarter of 2021, reflecting a 1.5 percent increase from the prior-year period. The contractor saw its diluted earnings per share climb 5.9 percent to $3.07, posted $1.5 billion in Q3 net cash from operating activities and reported a backlog of $88.1 billion at the end of the quarter, up 8.1 percent from the same period last year.
General Dynamics’ information technology business posted $2.06 billion in Q3 revenue, marking a 1.4 percent rise from the prior-year period.