The attack submarine Illinois is shown under construction at General Dynamics Electric Boat. (Jessica Hill/AP)
WASHINGTON — General Dynamics’ marine business expects its work in building submarines to drive hundreds of millions of dollars in annual revenue growth over the coming years, company head Phebe Novakovic told investors in a call Wednesday.
The company is expecting a $300 million increase in revenue in 2021, with a rough estimate of between $400-500 million of growth a year, Novakovic said, citing submarines as a significant driver. The next-generation ballistic missile submarine Columbia will account for much of that growth, she said.
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WNU Editor: Unless the Biden administration and Congress changes course and cut back on submarine procurement, submarines will defintily be a cash cow for some defense manufacturers.
2 comments:
General Dynamic
15.98 Profit
135.32 Sales
11.8 %
"For example, the average operating profit margin for the S&P 500 was 10.31% for the fourth quarter of 2018.1 A company that has an operating profit margin higher than 10.31% would have outperformed the overall market. However, it is essential to consider that average profit margins vary significantly between industries."
https://www.wsj.com/market-data/quotes/GD/financials
https://www.investopedia.com/ask/answers/041415/what-considered-healthy-operating-profit-margin.asp
General dynamics profit margin is not a cash cow. It is operating in the normal range.
Back in the 90's supermarkets had a an average profit of 3% and that was considered lean.
To use the term cash cow is to speak garrulously much like a grade schooler or a marxist.
I see building big subs as a waste of resources, lives and security given AI and other advancements.
We need more tails not less.
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