General Dynamics reports $3.3B profit in 2018

GENERAL DYNAMICS reported a profit of $3.3 billion in 2018, with its Marine Systems segment, which includes General Dynamics Electric Boat, posting operating profit of $761 million for the year. / COURTESY GENERAL DYNAMICS ELECTRIC BOAT
GENERAL DYNAMICS reported a profit of $3.3 billion in 2018, with its Marine Systems segment, which includes General Dynamics Electric Boat, posting operating profit of $761 million for the year. / COURTESY GENERAL DYNAMICS ELECTRIC BOAT

NORTH KINGSTOWN – General Dynamics reported a profit of $3.35 billion in 2018, a 14.9 percent increase from $2.9 billion in 2017, the company reported Wednesday. Diluted earnings per share for the year were $11.18, compared with $9.56 the previous year.

The company reported revenue of $36.2 billion, a 16.9 percent increase from the prior year.

The company’s Marine Systems segment, which includes General Dynamics Electric Boat and its operations in North Kingstown, reported an operating profit of $761 million, an 11.1 percent year-over-year increase, on segment revenue of $8.5 billion, a 6.2 percent increase over the year.

Overall, General Dynamics reported net income of $909 million profit in the fourth quarter of 2018, compared with a $636 million profit one year prior. Quarterly revenue was $10.4 billion, a 25.4 percent year-over-year increase.

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The company’s Marine Systems segment reported revenue for the fourth quarter of $2.3 billion, a 11.5 percent increase year over year. Segment earnings for marine systems were $213 million, an increase of 27.5 percent year over year.

The company said that Marine Systems contracts included:

  • $350 million from the U.S. Navy to provide design and development, and yard services for Virginia-class submarines
  • $180 million from the Navy for Advanced Nuclear Plant Studies in support of the Columbia-class submarine program
  • $70 million from the Navy for design, planning yard, engineering and technical support services for in-service nuclear submarines

The company also reported that by the end of the fourth quarter the Marine Systems segment had a funded backlog, unfunded backlog and estimated future contract value of $30.3 billion.

“General Dynamics delivered solid performance in 2018,” said Phebe N. Novakovic, General Dynamics chairman and CEO, in prepared remarks. “Our Aerospace segment successfully managed through a new model transition while achieving good order intake. Our defense businesses had strong operating performance and continued to book significant new business.”

Chris Bergenheim is the PBN web editor. Email him at Bergenheim@PBN.com.