CLAIM #25354 · GD (GD) · 2023Q2 earnings call · Jul 26, 2023 · due Jul 26, 2025
“They’re getting better, but we’ve got a while to go before they hit their two-a-year or more cadence.”
Phebe Novakovic · CEO
In context
“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. Congrats, Howard. Hey Phebe, within Combat, munitions kind of is viewed as a potential source of kind of upside volume, and thanks for all the color on the segment. But how should we be thinking about the munitions growth profile? I mean, it’s about -- finished last year, about 27% of your mix. Do you expect that mix to continue to grow? And any comments on the supply chain there as my follow-up, just because I know there’s been talk about challenges there. Thanks. Phebe Novakovic: The supply chain in the Combat group has been less of an issue. I suspect that the -- at least for the foreseeable future, the munitions portion of the business will remain about”
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SEC filings for GD ↗ · Claim quote is verbatim from the 2023Q2 earnings call.