General Dynamics (GD) has reported a 17.9% jump in net earnings for the second quarter of 2021 driven by increased sales in Combat and Technologies units.
In the three-month period that ended on 4 July 2021, the company’s net earnings amounted to $737m. The figure was $625m a year ago in the same quarter.
Diluted earnings per share (EPS) were $2.61, up 19.7% compared to $2.18 in the same period of the prior year.
The company’s revenue remained largely stable on a year-on-year basis, dropping 0.5% to $9.22bn in Q2 2021.
The order backlog increased nearly 8% to $89.2bn at the end of the second quarter.
GD’s all business segments reported an increase in revenue except for the Aerospace unit.
The Aerospace unit reported a 17.8% drop in quarterly revenue from $1.97bn in Q2 2020 to $1.62bn in Q2 2021.
The other three businesses, namely Marine Systems, Combat Systems and Technologies, recorded single-digit growth.
Combat Systems’ revenue stood at $1.89bn, an increase of 8.3% from $1.75bn a year ago.
The quarterly revenues of Marine Systems and Technologies were $2.54bn and $3.16bn, up 2.6% and 3.2% respectively.
GD chairman and CEO Phebe Novakovic said: “Emerging from the pandemic, we remain focused on operating discipline and wise deployment of capital.”
Some of the key defence contracts that the US-based company secured in the quarter include a $135m order from the US Navy to provide ongoing lead yard services for the Virginia-class submarine programme.
The US Army placed a $620m contract with GD for upgrading Stryker vehicles to the double-V-hull A1 configuration.
GD also secured a $435m contract from the army to produce Stryker Initial Maneuver Short-Range Air Defense (IM-SHORAD) vehicles.