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CLAIM #25463 · GD (GD) · 2024Q1 earnings call · Apr 24, 2024 · due Dec 31, 2024

Yes. So in the combat world, it's a little bit more of a robust supply chain in general that we typically have not had difficulty with, typically... But we're pretty comfortable that we can execute the growth.

Phebe Novakovic · CEO

CANNOT_DETERMINE
versus commitment · official band 5 percent
Committed
But we're pretty comfortable that we can execute the growth.
Reported
Combat saw robust order intake over the course of the year, resulting in a book-to-bill of 1.3:1.

In context

, if I could. I think that there were some adjustment downward in the backlog. Were those cancellations or ForEx, maybe 6 large jet cancellations or thereabouts? Phebe Novakovic: I don't think that's the way to look at it. But why don't Nicole get back to you on that? But we didn't have any particular notable cancellations. So let us unpack that one with you a little later. Operator: We will take our next question from Ron Epstein with Bank of America. Ronald Epstein: So Phebe, with the increased demand on munitions and so on and so forth, I mean, what are you doing to mitigate any of the issues that could arise from growth in those markets, just like we've seen in the Navy markets given all the demand and growth? There's been supply chain issues. Are you expecting... Phebe Novakovic: Yes. So in the combat world, it's a little bit more of a robust supply chain in general that we typically have not had difficulty with, typically. We know our priority. The suppliers who could conceivably cause issues, and we've been working with them to ensure that they can manage this growth. But we're pretty comfortable that we can execute the growth. Our focus is really on operations and execution. And those will be the two key drivers of the profitability in that group. Ronald Epstein: Got it. Got it. And then maybe back to the kind of the naval side of the house and the supply chain. Could you give us any color on where there are actual weaknesses in the supply chain where investment has to be made? Phebe Novakovic: So I'd say in the large -- in the single-source, sole-source suppliers who are, by definition, critical. And the Navy has focused quite intensely on those particular products and supply chain items. And I think they've been pretty explicit about where some of that might be.

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SEC filings for GD · Claim quote is verbatim from the 2024Q1 earnings call.