Stock Markets9 minutes ago (Oct 27, 2021 08:12AM ET)
© Reuters. FILE PHOTO: A General Dynamics sign is shown at the International Association of Chiefs of Police conference in San Diego, California, U.S. October 17, 2016. REUTERS/Mike Blake/File Photo
By Sanjana Shivdas and Mike Stone
(Reuters) -Defense contractor General Dynamics Corp (NYSE:) posted a 3% rise in third-quarter profit on Wednesday, boosted by higher sales in its marine systems unit which makes Navy ships and aerospace unit which makes Gulfstream business jets.
Business aviation has picked up from pandemic lows as easing travel curbs and the lure of private flights fills order books for new corporate aircraft.
The results follow yesterday’s 11% stock drop at weapons maker Lockheed Martin Corp (NYSE:) after it lowered its full-year revenue target, citing supply-chain issues, and figures from Raytheon Technologies (NYSE:), which makes a mix of weapons and commercial aerospace components and which raised its forecast for full-year adjusted profit on encouraging signs in the commercial air travel space.
Sales in General Dynamics’ marine systems unit, which makes nuclear-powered submarines and surface ships for the U.S. Navy, rose 9.6% to $2.64 billion, while aerospace sales rose 4.6% to $2.07 billion.
The company delivered 31 Gulfstreams versus 32 a year ago, but signaled strong order activity for its business jets.
General Dynamics earlier this month announced two new jets, with its larger Gulfstream G800 set to compete with Bombardier (OTC:) Inc’s Global 7500 and Dassault Aviation SA’s 10X.
Net earnings rose to $860 million, or $3.07 per share, beating an average analyst estimate of $2.98 for the quarter ended Oct. 3, up from $834 million, or $2.90 per share, a year earlier.
Revenue rose 1.5% to $9.57 billion, which missed an average analyst estimate of $9.85 billion according to Refinitiv data.
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