By Shreyasee Raj and Mike Stone
(Reuters) – Defense contractor General Dynamics Corp on Wednesday posted a 7% rise in first-quarter revenue as its aerospace unit’s sales picked up, fueled by hopes of economic recovery following mass COVID-19 vaccinations.
Shares rose in pre-market trading to a 14-month high.
The company’s Gulfstream business jet deliveries rose to 28 units from 23 a year earlier, but fell from 40 in the prior quarter, amid increased coronavirus inoculations and easing travel restrictions.
While General Dynamics’ aerospace segment saw a slump during the global health crisis last year as its supply chain struggled, the company’s bottom-line was buoyed by its robust defense unit. In 2020, 69% of its consolidated revenue was from the U.S. government.
In the quarter, sales across all four of its business segments were up compared with the same period last year.
Sales in the company’s aerospace unit rose to $1.89 billion for the first quarter from $1.69 billion a year earlier, while overall revenue rose to $9.39 billion from $8.75 billion.
Marine Systems revenue was up 10.6% compared with a year ago, after a $1.9 billion award from the U.S. Navy for the construction of a tenth Virginia-class submarine.
Net earnings rose marginally to $708 million, or $2.48 per share, from $706 million, or $2.43 per share, a year earlier.
(Reporting by Shreyasee Raj in Bengaluru and Mike Stone in Washington; Editing by Ramakrishnan M. And Steve Orlofsky)
