Brenda Marie Rivers
General Dynamics will reinvest $1B into updating its company-wide manufacturing operations to include emerging submarine construction efforts, USNI News reported Wednesday.
Jason Aiken, chief financial officer of General Dynamics, said during a recent conference call with financial analysts that the company’s capital expenditures will account for 3 percent of 2019 sales due to Columbia-class ballistic missile submarine construction efforts.
The company’s capex strategy will primarily focus on improving the operations of General Dynamics Electric Boat, which is currently preparing for the construction of an initial Columbia-class submarine in 2020.
The unit is also working on block IV and V Virginia-class attack submarines.
General Dynamics expects 2019 sales to increase from the $36.2B reported last year, with its Marine Systems division poised to reach $9B in 2019.
