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General Dynamics reports increase in first-quarter revenue

29 Apr 2021 (Last Updated April 29th, 2021 17:33)

US-based aerospace and defence company General Dynamics (GD) has recorded a 7.3% increase in revenue for the first quarter of this year, on a year-on-year basis.

General Dynamics reports increase in first-quarter revenue
General Dynamics’ headquarters in Reston, Virginia. Credit: Nwalser7 / Wikimedia Commons.

US-based aerospace and defence company General Dynamics (GD) has recorded a 7.3% increase in revenue for the first quarter of this year, on a year-on-year basis.

The company’s revenue in the quarter was $9.4bn, compared to $8.75bn in the same quarter of last year.

GD’s net earnings remained largely stable, increasing from $706m in the first quarter of last year to $708m in the first quarter of this year.

Order backlog soared by 4.5% from a year-ago quarter to $89.6bn, while company-wide operating margin for the quarter was 10%.

GD also reported an increase in revenue across all four of its business segments, namely Aerospace, Marine Systems, Combat Systems and Technologies.

GD chairman and CEO Phebe Novakovic said: “Continued recovery from the pandemic coupled with our focus on operating performance yielded a strong quarter, with year-over-year earnings growth driven by increased revenue across all four of our business segments.

“Our improved cash outlook enabled us to continue investing in future growth while returning capital to shareholders.”

Some of the key defence contracts secured by the company in this quarter include a $1.9bn order from the US Navy for building a tenth Block V Virginia-class submarine.

Other contracts given to GD by the US Army include a $295m order for various munitions and ordnance, and a $225m order for inventory management and support services for its Stryker vehicle fleet.

The company is among multiple awardees selected under the Information Technology Enterprise (SITE) III programme with a maximum potential value of $12.6bn to offer IT and technical support services to intelligence agencies.

Earlier this month, GD unveiled a Brimstone missile-equipped variant of its Ajax vehicle.

The company installed the Brimstone missile on the Ares variant of the Ajax vehicle family, making use of its electronic architecture. GD said this enables the rapid insertion of ‘new technologies and capabilities’.