Brian Bradley
NS&D Monitor
2/13/2015
General Dynamics this week reported a $1.4 billion backlog for engineering services for design and development of the Ohio-Class Replacement submarine at the year-end of 2014, representing about 4.5 percent of total backlog reported for GD’s Marine Systems group at the end of 2014, according to the company’s 10-K filing. In total, engineering services represented $2 million of the Marine Systems group’s $30.8 million backlog at the end of 2014. Year to year, Marine Systems backlog increased more than 80 percent from $16.9 billion at the end of 2013. Appropriators gave about $1.2 billion for work on the Ohio-Class Replacement for Fiscal Year 2015, and the Obama Administration is requesting $1.4 billion for FY 2016.
Two weeks ago, General Dynamics Chairwoman and CEO Phebe Novakovic during her company’s Fourth Quarter of FY 2014 conference call said Electric Boat continues to increase year-over-year work on the sole-source Ohio-Class Replacement contract, as development of the SSBN(X) has continued “on pace” on the sole-source contract, she said. “And it’s going very well,” Novakovic said. “So we like where we are positioned there.” Ohio-Class Replacement subcontractors include B&W and Huntington Ingalls. Year over year, revenue for General Dynamics’ Marine Systems segment grew more than any other division, as the group earned 25 percent more in the Fourth Quarter of 2014 than the Fourth Quarter of 2013. Earnings increased from $1.6 billion to $2 billion, according to the company’s earnings results. Overall, General Dynamics posted a 4 percent increase in year-over-year revenue, as earnings rose from $8 billion to $8.4 billion.
