General Dynamics Q2 Profit Up 3.9%; Phebe Novakovic Cites ‘Strong Demand’ in Aerospace Segment

General Dynamics (NYSE: GD) logged a $766 million profit for the second quarter of its 2022 fiscal year and $9.2 billion in revenue, figures respectively 3.9 percent higher and relatively flat compared to the same period last year.

The Reston, Virginia-based defense contractor said Wednesday earnings totaled $2.27 per share, up 5.4 percent from the same April-June period last year.

Pheobe Novakovic, chairman and CEO of General Dynamics and an eight-time recipient of the Wash100 Award, noted demand in the aerospace business was strong during the quarter, with margins exhibiting a year-over-year steady improvement.

Aerospace segment revenue climbed 15.1 percent year over year to $1.87 billion and the company attributed the increase mainly to higher Gulfstream service center sales and Jet Aviation fixed-based operator service volume.

Sales in the technologies segment – which is composed of General Dynamics information technology and mission systems units – fell 5 percent year-over-year for the quarter to $3 billion with two-thirds of the decline attributable to GDMS as chip shortage continues to affect the unit’s product deliveries.

The company reported revenue from marine systems grew 4.5 percent to $2.65 billion while combat systems declined 12.3 percent to $1.67 billion.

Notable defense-related contracts for the quarter include the U.S. Army’s award of a potential $1.14 billion for Mobile Protected Firepower vehicle production.

All sum components considered, total backlog as of June 30 stood at $126.4 billion with approximately $38.7 billion from unexercised contract options and indefinite-delivery/indefinite-quantity awards.

General Dynamics shares opened Wednesday at $219.45, up from a previous close of $217.63.

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