General Dynamics posted fourth-quarter profit and revenue above Wall Street estimates on Wednesday. This was driven by growth in its combat and marine systems segments.
As geopolitical uncertainty and global conflicts continued to buoy demand for arms and ammunition during the quarter, General Dynamics' marine business benefited from improving supply chain conditions. It also saw support from government investments in the Columbia and Virginia class nuclear-powered submarine programmes.
The combat systems segment, which manufactures combat vehicles, weapons systems and munitions, also benefited from growing international demand. This was especially evident in Europe.
For the quarter ended December 31, total quarterly revenue rose nearly eight per cent from a year ago to $14.38 billion.
Analysts on average had expected fourth-quarter revenue of $13.81 billion, according to data compiled by LSEG. The company's profit came in at $1.14 billion, compared with $1.15 billion a year ago.
On an adjusted basis, earnings were $4.17 per share, above analysts' estimates of $4.09. The company's bookings during the quarter were 1.6 times its billing. This indicated strength in the overall order book.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Maju Samuel)