April 23 (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.
Shares were up slightly in pre-market trading in New York
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.
On April 16, the company's new Gulfstream G800 jet received certifications from the Federal Aviation Administration and the European Union Aviation Safety Agency. The aircraft can seat up to 15 passengers and has a maximum range of 8,200 nautical miles, according to the company's website.
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 beating analyst estimates of $3.50 and up from $799 million or $2.88 per share a year ago. Revenue of $12.2 billion also beat Wall Street analyst estimates of $11.9 billion.
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.
In March General Dynamics Electric Boat was awarded a $1 billion contract allowing it to purchase long lead time materials for Virginia Class Block VI submarines.
Reporting by Aatreyee Dasgupta and Mike Stone; Editing by Pooja Desai and Chizu Nomiyama
Source: Reuters