Jan 28 (Reuters) – General Dynamics posted fourth-quarter profit and revenue above Wall Street estimates on Wednesday, driven by growth in its combat and marine systems segments.
As geopolitical uncertainty and global conflicts continued to buoy demand for arms and ammunition during the quarter, General Dynamics’ Marine business benefited from improving supply chain conditions and support from government investments in the Columbia and Virginia class nuclear-powered submarine programs.
The combat systems segment, which manufactures combat vehicles, weapons systems and munitions, also benefited from growing international demand, especially in Europe.
For the quarter ended December 31, total quarterly revenue rose nearly 8% from a year ago to $14.38 billion.
Analysts on average had expected fourth-quarter revenue of $13.81 billion, according to data compiled by LSEG.
The company’s profit came in at $1.14 billion, compared with $1.15 billion a year ago. On an adjusted basis, earnings were $4.17 per share, above analysts’ estimates of $4.09.
The company’s bookings during the quarter were 1.6 times its billing, indicating strength in the overall order book.
The Gulfstream business jet-making unit’s deliveries were 45 aircraft in the fourth quarter, down from 47 a year ago.
In November, the president of Gulfstream Aerospace flagged slowed opportunities for business jet deals in China as a result of trade tensions with the U.S. during the quarter.
However, annual Gulfstream aircraft deliveries rose to 158 units, up from last year’s 136, as the segment continues to ramp up production and recover from supply chain issues.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Maju Samuel)
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