General Dynamics 3Q profit falls on higher costs
FALLS CHURCH, Va. (AP) — General Dynamics said Wednesday that its third-quarter net income fell 8 percent, as higher costs more than offset a modest revenue increase.
The Falls Church, Va., aerospace and defense company earned $600 million, or $1.70 per share, down from $652 million, or $1.80 per share, in the same quarter last year. Revenue edged up 1 percent to $7.93 billion.
The results fell short of Wall Street predictions. Analysts, on average, expected profit of $1.78 per share on $8.03 billion in revenue, according to FactSet.
The company said earnings were hurt by $25 million in costs related to the revaluation of part of its computer inventory.
But demand for aerospace products was strong, with General Dynamics receiving orders for every type of Gulfstream aircraft.
Revenue at the company's aerospace business jumped 30 percent to $1.84 billion, while combat systems revenue dropped 9 percent to $1.96 billion and information systems and technology revenue fell 8 percent to $2.47 billion.
General Dynamics shares rose $2.51, or 3.8 percent, to $68.72 in afternoon trading.