Some of the largest defense contractors today reported higher quarterly sales and profit.
General Dynamics announced quarterly sales of $9.6 billion, up about 4% from the same three-month period a year earlier.
The contractor's quarterly profit hit $806 million, up nearly 3% from the prior year.
General Dynamics said all of its business units, except its information technology segment, saw sales increases during the quarter. GDIT reported a 12% decrease in quarterly sales and a 1% decrease in quarterly profit.
In a call with analysts this morning, Phebe Novakovic, General Dynamics' chief executive, attributed GDIT's sales decline to divestitures. She said the unit's integration with CSRA continues to go well and to achieve cost synergy targets.
Novakovic said the unit is well positioned and will see its backlog turn into organic growth in 2020.
"This is sort of a transition year for us," she said. "All of the indicators for growth are there."
Meanwhile, Boeing today said sales in its defense group during the most recent quarter reached $6.6 billion, up 8% from the prior year.
The defense group's quarterly profit reached $975 million, up 159% from the prior year.
Boeing said the defense group benefited from lower cost growth on the tanker program.
At Northrop Grumman, sales in the most recent quarter reached $8.5 billion, up 19% from the prior year. The contractor recorded quarterly profit of $861 million, up 6% from a year earlier.
The company's mission systems business saw the largest sales boost in the quarter. The unit's quarterly revenue hit $254 million, up 9%. Northrop said the unit's quarterly profit grew 16%.
In a call with analysts today, Kathy Warden, Northrop's chief executive, said the company's technology services unit, rearranged early this year, has stabilized its topline and is on a good trajectory.
"Our win rate there in the first half of the year has been very solid, particularly on recompetes, where we've been able to defend the business that we have," she said.