CLAIM #25355 · GD (GD) · 2023Q2 earnings call · Jul 26, 2023 · due Jul 26, 2024
“I suspect that the -- at least for the foreseeable future, the munitions portion of the business will remain about that, same as we see uplift in all of our all three businesses.”
Phebe Novakovic · CEO
In context
“k 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 that, same as we see uplift in all of our all three businesses. We’ll see OTS at about that same level. We’ve already increased munitions capacity and working with the federal government and the Army and OSD in particular, we have a very detailed plan to further increase capacity, which will allow us then to increase production very rapidly and move to the left, the munition availability to meet the United States’ needs and, frankly, external needs as well. Howard Rubel: Operator, we’ll just take one more question, please. Operator: And our final question for today comes from the line of George Shapiro from Shapiro Research. George Shapiro: Good morning, and congratulations, Howard. I didn’t figure I’d outlast you, but we’ve known each other a lot of years and... Howard Rubel: George, it’s over 40, just counting. George Shapiro: That’s right. Phebe, o”
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SEC filings for GD ↗ · Claim quote is verbatim from the 2023Q2 earnings call.