- Third-quarter net income of $902 million or $3.26 per share
- Analysts on average expected a net income of $3.15/shr
Oct 26 (Reuters) – Gulfstream business jet maker General Dynamics Inc ( GD.N ) on Wednesday reported third-quarter profit that topped analysts’ expectations, helped by private jets and strong demand for products and services from its maritime systems unit .
The group has benefited from demand for private jets in the U.S. and elsewhere despite concerns about an economic slowdown due to broader economic uncertainty.
“Only time will tell about the macroeconomic impact, but we continue to see strong interest in Gulfstream aircraft and services,” General Dynamics CEO Phebe Novakovic told analysts.
Gulfstream expects to deliver 40 or 41 aircraft in the final three months of 2022, she said, after delivering 35 business jets in the previous quarter and 31 a year earlier.
Improved profit margins and a growing Gulfstream backlog helped the Virginia-based defense contractor offset rising costs, supply chain constraints and labor shortages that have weighed on manufacturing.
Novakovic acknowledged that “supply chains remain a potential challenge ahead,” but did not see labor shortages as a constraint on income growth. During the third quarter, the company’s Mission Systems segment faced pressure from supply chain disruptions, inflation and workforce disruptions.
The company also disclosed an order for arms business related to the Ukrainian war.
Net income2 for the quarter ended October was $902 million, or $3.26 per share, compared with $860 million, or $3.07 per share, a year earlier.
Analysts on average expected net earnings of $3.15 per share, according to Refinitiv data.
Sales at the Marine Systems unit, which makes nuclear-powered submarines, rose 5 percent to $2.77 billion from $2.64 billion a year earlier, while total revenue rose 4.3 percent to $9.98 billion.
Sales in the aerospace segment rose 13.6 percent to $2.35 billion from $2.07 billion a year earlier.
Reporting by Nathan Gomes in Bengaluru and Allison Lampert in Montreal; Editing by Milla Nissi and David Holmes
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