General Dynamics CFO: 'We like where we are right now'

By Marjorie Censer / February 18, 2016 at 3:07 PM

As other prime contractors divest their IT services businesses, General Dynamics sees "no compelling reason" to do the same, the contractor's chief financial officer said at a conference today.

"It's clearly been a dynamic sector of the environment," Jason Aiken said of IT services at a Barclays conference in Miami Beach, FL.

Lockheed Martin, for instance, announced earlier this year it would spin off its IT services unit and combine it with Leidos, while L-3 Communications sold its services business to CACI International.

But General Dynamics, Aiken said, sees the company's information systems and technology unit as a business "that's of scale" and as "lean as they can be."

"It's a tremendous cash-generation engine," he said. "And it's a low level [of] invested capital."

"We like what it does to our portfolio," Aiken added. "We like where we are right now."