General Dynamics Profit Down 10%, But Tops Views

Defense contractor General Dynamics (GS) saw a nearly 10% decline in earnings in its third quarter as the company furloughed factories related to its Gulfstream jet business, but saw better-than-expected results in its defense unit. The company also raised its full-year per-share earnings guidance.

General Dynamics said it earned $572 million, or $1.47 a share, down from $634 million, or $1.59 a share, in the same quarter a year ago. Revenue increased 8.1% to $7.72 billion.

The results topped predictions of $1.40 per share in profit on $7.75 billion in revenue, according to estimates provided by Thomson Reuters.

This quarter was impacted by a five-week production halt the company instituted in July and August at its Gulfstream jet factories. Business-jet demand has fallen dramatically for several quarters now as global wealth has disappeared and executive and corporate use of private jets has become a political sore spot.

“The company performed well despite the impact of reduced aircraft production at Gulfstream Aerospace,” said company President and CEO Jay Johnson in a statement.

GD’s information technology business saw earnings rise 9.6%, while the aerospace segment reported a 56% profit jump as sales climbed 18% and combat-systems saw profits rise 21%.

General Dynamics shares were flat early Wednesday, at $65.92.