General Dynamics announced on Wednesday that its $7.7 billion second quarter revenue achieved $758 million in net earnings, due in part to an increase in their aerospace division and submarine production lines.
“General Dynamics delivered unprecedented operating performance this quarter,” said Phebe Novakovic, chairman and CEO of General Dynamics. “We are executing on our programs and focused on operations, leading to strong earnings and record-setting operating margins.”
The revenue figure is down by $217 million from the second quarter of last year, when the total was $7.8 billion. Yet the net earnings of $758 million is $6 million more than the same time last year.
The company’s record-setting 14 percent operating margin makes Novakovic “quite optimistic” for 3rd quarter earnings and said the 4th quarter will be “strong.”
An increase in production of the mid-sized Gulfstream business jet allowed the company to boast a 7.5 percent increase in diluted earnings per share. While the business jet is a leading seller in the industry, a new version of the Gulfstream 500 will add a new edge to the aerospace division.
The defense giant’s maritime division also adds to an optimistic outlook as General Dynamics was named the prime contractor for the replacement for the Ohio-class ballistic missile submarine. Novakovic expects to see “ignition” in the submarine sector in 2017 as the company will continue delivering Virginia-class submarines and will begin initial phases for the Ohio replacement. The Virginia subs are scheduled for two per year through 2023 while the Ohio replacement will begin production in 2021 and continue through 2027.
