Defense contractor General Dynamics profit surges 12%

Sales of $10.77B topped Wall Street expectations

Profit at General Dynamics Corp. increased 12 percent in the fourth quarter, as the defense contractor and jet maker saw gains in its combat-system business and marine-systems unit.

The company on Wednesday reported net income of $1.02 billion, or $3.51 a share, up from $909 million, or $3.07 a share, in the fourth quarter of 2018.

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Sales rose about 4 percent from a year earlier to $10.77 billion. Analysts expected $10.65 billion in sales.

General Dynamics said sales from its combat systems segment, which develops vehicles, weapons systems and munitions for governments, rose 13 percent from a year earlier. The marine business, which creates products like nuclear-powered submarines, saw sales increase about 12 percent.

But sales in the company's information technology unit fell 15 percent, General Dynamics said.