General Dynamics says coronavirus could hurt business

By Marjorie Censer / March 23, 2020 at 12:40 PM

General Dynamics in a filing today added the coronavirus outbreak as a potential business risk.

The filing with the Securities and Exchange Commission follows a similar update filed by Northrop Grumman last week.

In the document, General Dynamics said the COVID-19 outbreak or any other outbreaks "could have a negative effect on our business, results of operations and financial condition."

"These effects could include disruptions or restrictions on our employees' ability to work effectively, as well as temporary closures of our facilities or the facilities of our customers or suppliers," the contractor continued. "This could affect our performance on our contracts. Resulting cost increases may not be fully recoverable or adequately covered by insurance, which could impact our profitability."

Additionally, General Dynamics noted that the health crisis has taken a toll on multiple countries' economies, "which could result in an economic downturn that may negatively affect demand for our products."

"The extent to which COVID-19 could impact our business, results of operations and financial condition is highly uncertain and will depend on future developments," the company added. "Such developments may include the geographic spread and duration of the virus, the severity of the disease and the actions that may be taken by various governmental authorities and other third parties in response to the outbreak."