“Electric Boat needs to continue to get better to offset likely additional supply chain challenges as the Virginia supply chain begins to improve.”

In context

“cted. But then also, as you think about the remainder of the year, what will drive the significant step down and how much conservatism does the Marine outlook reflect in terms of the growth? Phebe Novakovic: So, growth in the quarter was driven by improved -- increased volume on Columbia and on the oiler program as well as additional throughput throughout each one of those yards, which is often a precursor to better margin performance. And finally, just the -- revenue came in faster than we had anticipated, really across the board. And that will drive our expectations. With respect to the margin performance, we have -- Columbia is doing very well. We’ve got nice performance on the oiler. We see some deck plate improvements of Bath, but that has yet to translate into financial performance. Electric Boat needs to continue to get better to offset likely additional supply chain challenges as the Virginia supply chain begins to improve. And with respect to that supply chain, we see improvements and some very nice improvement in some area. But that supply chain was hit hard by COVID. And I think a little bit of explanation there is helpful. COVID impacted that supply chain, Virginia supply chain, in particular, in a couple of ways. Obviously, the impact of COVID itself, the workforce disruption. Then we had the large demographic changeover. And finally, Virginia was impacted by the Columbia prioritization. All of that made it difficult for that supply chain to begin to get back on cadence. They’re getting better, but we’ve got a while to go before they hit their two-a-year or more cadence. Operator: Your next question comes from the line of Peter Arment from Baird. Peter Arment: Thank you. Good morning, Phebe and Jason. C”