(Reuters) -General Dynamics reported a 27% rise in first-quarter profit on Wednesday, driven by recovery in its aerospace segment, as well as sustained strength in its defense business.
The aerospace unit, which makes Gulfstream business jets, posted a 45% increase in revenue in the reported quarter, compared to the same quarter a year ago.
Earnings at the unit were up 69% as deliveries hit 36 in the quarter, up from 24 a year ago.
“The aerospace segment saw a significant increase in profitability,” said CEO Phebe Novakovic.
The defense giant, however, reported that its business jet orders fell compared with the previous quarter.
General Dynamics has been hampered in recent quarters by delayed jet engine supplies and longer certification times that have kept the company from completing deliveries on schedule.
The Reston, Virginia-based company reported quarterly profit of $994 million or $3.66 per share, up from $799 million or $2.88 per share a year ago.
Defense contractors continued to benefit from strong demand for weapons and other military equipment during the reported quarter owing to the ongoing Russia-Ukraine war.
“We continue to see steady growth and improvement in operating performance across the defense portfolio,” Novakovic said.
For the quarter ended March 30, the company’s combat systems segment that makes weapon systems and military vehicles saw a 3.5% rise in revenue. Its nuclear-powered submarine-making marine systems segment also saw a 7.5% rise.
(Reporting by Aatreyee Dasgupta and Mike Stone; Editing by Pooja Desai)
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