General Dynamics: Ohio-class Replacement a Main Driver for Revenue Boost

The Ohio-class Replacement was one of two main drivers for General Dynamics’ 5.5 percent overall revenue increase from the second quarter of fiscal 2014 to the second quarter of fiscal 2015, as sales rose from $7.5 billion to $7.9 billion, company officials stated yesterday. GD CEO Phebe Novakovic said the program is on schedule. “Ohio[-class Replacement] engineering and Virginia[-class submarine] construction are really the two main drivers of increased revenue,” she said yesterday during the company’s quarterly conference call. “We are the prime and we are working on all of the ship arrangement systems, components, development, missile system compartment in order to support the start of the lead ship, which is in 2021. So we are doing very, very well by all indicators in our engineering design efforts.” The Navy aims to start procuring the 12 planned boats in 2021 and to launch the first ship in 2031. Navy officials estimate the program will cost roughly $100 billion.