General Dynamics beats profit estimates as Gulfstream deliveries rise

[July 29, 2020]  (Reuters) - General Dynamics Corp <GD.N> topped Wall Street estimates for quarterly profit on Wednesday, as the defense contractor benefited from higher deliveries of its Gulfstream business jets and strong sales at its marine systems unit.

 A General Dynamics NASSCO ship yard entrance is shown in San Diego, California, U.S., June 17, 2019. REUTERS/Mike Blake

The company said it was able to deliver 32 jets in the quarter, up from 23 in the preceding quarter, despite continued challenges in making international deliveries due to coronarivus-related travel restrictions.

However, revenue at the company's aerospace unit, which makes Gulfstream jets, fell 7.6% to $1.97 billion.

The business jet industry has been hit by the coronavirus outbreak as fears of contracting the infection coupled with widespread lockdown restrictions battered demand for air travel and new corporate aircraft.

Business jet makers are now waiting to see if a recent revival in air travel could eventually lead to new orders.

Sales in its marine systems unit, which makes ships and submarines for the U.S. Navy, rose 6.3% to $2.47 billion, while it's combat systems unit, posted a 5.7% rise to $1.75 billion.

Total revenue fell 3% to $9.26 billion.

Net earnings fell 22.5% to $625 million, or $2.18 per share, in the second quarter ended June 28.

Analysts on average expected the company to post earnings of $2.15 per share, according to IBES data from Refinitiv.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel)

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