PROVIDENCE – General Dynamics Corp. reported 2017 net income of $2.9 billion, a year-over-year increase of 13.2 percent, on revenue of $31 billion, a 1.3 percent gain over the year. Diluted earnings per share for the year were $9.56, an increase from $8.26 in 2016.
The company’s Marine Systems segment, which includes Electric Boat, reported operating earnings of $685 million, a 15.1 percent year-over-year improvement, on revenue of $8 billion, which represented a 0.8 percent decline from 2016. Marine Systems enjoyed an 8.6 percent operating margin for the year, an improvement on 2016’s 7.4 percent.
The report highlighted the segment’s yearly performance, noting the division “continues to execute on its considerable backlog and received multiple significant contracts in 2017, including the design and prototype development for the U.S. Navy’s Columbia-class submarine.”
The company also pointed to the $505 million from the Navy to provide research and development, and lead yard services for Virginia-class submarines, as well as $75 million from the Navy for Advanced Nuclear Plant Studies in support of the Columbia-class submarine as part of its fourth-quarter’s significant orders. In addition, the company reported a total potential contract value of funded and unfunded backlog of $29 billion for the Marine Systems division.
The company also pointed to an uptick in the line of Gulfstream planes it produces.
“General Dynamics delivered strong results in 2017, with growth in revenue, earnings, margins and EPS,” said Phebe Novakovic, chairman and CEO of General Dynamics, in a statement. “We are investing for the future and executing on our robust backlog. We see continued demand for our products, with backlog growth in 2017 in our defense business and strong order intake across the Gulfstream portfolio.”
Chris Bergenheim is the PBN web editor.
