The shipbuilding segment of General Dynamics, including Bath Iron Works, has put a damper on the company’s annual profit forecast, officials said Wednesday.
If it weren’t for the electric boat and submarine divisions of General Dynamics exceeding expectations, company officials said profits would be even lower.
General Dynamics beat fourth-quarter profit and revenue estimates on Wednesday, driven by growth in combat and marine systems segments.
But the defense and aerospace giant forecast its annual profit below analysts’ expectations.
Shares of the company fell nearly 5% in morning trade, Reuters reported on Investing.com.
BIW, which became a General Dynamics subsidiary in 1995, is part of the company’s marine division.
That segment has been recovering from supply chain disruptions and labor shortages, officials said.
Though it saw increased productivity during the last quarter, it wasn’t enough to boost annual profit expectations.
Annual profit is expected to range between $16.10 and $16.20 per share, while analysts on average were estimating $17.29 per share.
Ten years before BIW became part of General Dynamics, it won the competition for design and construction of USS Arleigh Burke (DDG 51), the lead ship for the Navy’s most capable class of AEGIS guided missile destroyers.
The DDG 51 program has become one of the longest-running shipbuilding programs for surface combatants in U.S. Navy history.
