April 26 (Reuters) - General Dynamics Corp (GD.N) on Wednesday reported a 5.2% rise in quarterly revenue, boosted by strong demand for munitions amid geopolitical instability caused by Russia’s full scale invasion of Ukraine.
Shares were down 5.5% to $210.40 during early trading in New York after Chief Executive Officer Phebe Novakovic warned second quarter revenue would be lower than anticipated due to investments the company is making into building its newest business jet, the G700, which is expected to receive FAA certification by late summer.
U.S. defense contractors have benefited as the war in Ukraine and tense U.S.-China relations have fueled demand for weapons such as tanks, submarines and munitions.
Orders at General Dynamics’ Combat Systems business unit which makes tanks and munitions were at their highest level in eight years.
However, quarterly profit was flat at $730 million, as supply chain disruptions and labor shortages continue to hobble production.
Revenue at the Marine Systems unit, which makes ships in addition to submarines, increased 12.9% versus the same period a year ago with profit flat.
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