General Dynamics reported a profit and turnover for the fourth quarter on Wednesday that exceeded Wall Street's expectations. This performance was driven by the growth areas of combat systems and naval systems.
As geopolitical uncertainty and global conflict continued to drive demand for weapons and ammunition during the quarter, General Dynamics' naval business benefited from improving supply chain conditions and support from government investment in the Columbia and Virginia-class nuclear-powered submarine programs.
The combat systems segment, which manufactures combat vehicles, weapons systems and ammunition, also benefited from growing international demand, particularly in Europe.
In the quarter ending December 31, total quarterly sales rose by almost 8% year-on-year to USD 14.38 billion.
According to data compiled by LSEG, analysts had on average expected sales of 13.81 billion US dollars in the fourth quarter.
The company's profit amounted to 1.14 billion US dollars, compared to 1.15 billion US dollars in the previous year. Adjusted earnings per share were USD 4.17, above analysts' estimates of USD 4.09.
The company's order intake for the quarter was 1.6 times billings, indicating a strong overall order backlog.
Gulfstream's business jet division delivered 45 aircraft in the fourth quarter, compared to 47 in the year-ago quarter.
In November, the President of Gulfstream Aerospace noted the decline in business jet opportunities in China during the quarter due to trade tensions with the United States.
However, annual deliveries of Gulfstream aircraft rose to 158 units, up from 136 a year earlier, as the segment continues to ramp up production and recover from supply chain issues.