General Dynamics (NYSE: GD) booked a profit of $902 million for the third quarter of its 2022 fiscal year, 4.9% higher than the $860 million net earnings it reported over the same period in 2021. Revenue for the period climbed 4.3% to $9.98 billion from $9.57 billion.
The aerospace and defense contractor said Wednesday diluted earnings for the three-month period came in at $3.26 per share, up from $3.07 per share a year earlier, and revenue climbed 4.3 percent YOY to $10 billion.
Phebe Novakovic, chairman and CEO of General Dynamics, cited a strong demand in the company’s aerospace, combat and marine systems segments, while supply chain issues and inflation headwinds posed challenges, particularly for the technologies group.
The eight-time Wash100 Award recipient forecasts the supply chain landscape to remain a potential challenge in the fourth quarter.
Aerospace segment revenue went up 13.6 percent year over year $2.35 billion, owing to strong interest in Gulfstream aircraft and services. The segment aims to deliver around 40 to 41 aircraft in the next quarter.
Sales in the marine systems and combat systems grew to $2.77 billion and $1.79 billion, respectively, from $2.64 billion and $1.75 billion in the year-ago period. The marine business has displayed quarterly revenue growth over the last 20 quarters.
Technologies group revenue fell 1.6 percent to $3.07 billion, as its mission systems unit experienced bottlenecks such as additional supply chain disruptions, labor availability and customer contracting delays during the quarter.
Notable awards for three General Dynamics defense segments in the quarter included a $1.4 billion U.S. Navy project to build an additional Expeditionary Sea Base vessel and two more John Lewis-class fleet replenishment oilers.
Total backlog at the end of the quarter stood at $125.8 billion, with around $37 billion coming from unexercised contract options and indefinite-delivery/indefinite-quantity awards.
General Dynamics shares opened higher on Wednesday at $247.50, compared to a previous close of $245.75.