General Dynamics reorganizes mission systems and IT businesses

General Dynamics said today it has consolidated its mission systems and information technology units into a single reporting unit, called technologies, "to better reflect the way we are running the business, the overlap and commonality of customers, and customer demand for end-to-end solutions melding technology, hardware and software."

In a call with analysts today, Phebe Novakovic, General Dynamics' chief executive, said the businesses are still operating independently, but being reported as one.

"They're working together on bids, they're submitting bids together. . . . These are two separate businesses managed separately," she said. "It's very important to keep them separate from a management point of view, but to have them come together to work more seamlessly we believe this reporting structure helps."

Meanwhile, General Dynamics said today sales during its most recent quarter totaled $10.5 billion, down almost 3% from the same three-month period a year earlier. The company's quarterly profit reached almost $1.3 billion, down about 1% from the prior year.

The contractor saw the most significant sales and profit declines in its aerospace unit.

For the year, General Dynamics recorded sales of $37.9 billion, down almost 4% from 2019. Profit for the year totaled $4.1 billion, down nearly 10%.