CLAIM #25506 · GD (GD) · 2024Q2 earnings call · Jul 24, 2024 · due Jan 24, 2026
“We are hopeful that the additional funding that we're putting into the supply chain should help stabilize over time.”
Phebe Novakovic · CEO
In context
“trial base, as you noted. That money has begun to flow, and it is intended for another, and it's targeted for a number of uses. One, increased throughput; two, some facilitization, some training, increased hiring. And so it's been really critical, and we've been pushing very hard to get that money as fast as we possibly can into the supply chain to help stabilize them. And let me put it to you this way. There are some supply chain providers who are improving and improving quite nicely. We still have some challenges out there that are pretty well publicized, but we're continuing to work with the U.S. Navy on how to the extent that those can be mitigated. So we continue to see cost impacts from late deliveries of out-of-sequence work, as I noted in my remarks. But we continue to be hopeful. We are hopeful that the additional funding that we're putting into the supply chain should help stabilize over time. So with respect to your 10% margin, that certainly is our goal. I think the supply chain has to stabilize. We've got to come down our learning curves on Columbia. Virginia throughput has to increase. So we will ultimately stabilize in the Marine group. And I will notice, by the way, I think you mentioned something about the workforce. We have, in the last year or so had no difficulty in hiring at our shipyards, and our training program has been pretty robust. So we've got shipbuilders coming out of that training program with a higher than typical level of proficiency. Our retention is also much better. So that gives us some confidence in the throughput and productivity capacity of the shipyards. But everything in shipbuilding is slow. So it's small, incremental improvement over time. But”
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SEC filings for GD ↗ · Claim quote is verbatim from the 2024Q2 earnings call.