Introduction
General Dynamics has been making things for the U.S. Department of Defense since its founding in 1955, but it wasn’t until 1992 that it took its current form. The company is organized into four segments: Combat Systems (CS), Aerospace (AS), Marine Systems (MS) and Information Systems & Technology (IS&T). Each of these segments are responsible for designing and manufacturing different types of products that can be used by the U.S. Department of Defense or sold to other customers in various industries around the world.
General Dynamics designs and manufactures combat vehicles, weapons systems and munitions, military ships, command and control, communications and information technology for the U.S. If you look at it from the perspective of how the company interacts with an end customer (the U.S. Department of Defense), then it is a manufacturing company that makes combat vehicles, weapons systems and munitions, military ships, command and control equipment, communications equipment and information technology. In addition to manufacturing these items, the company also operates four businesses that provide other types of services to the U.S. Department of Defense: Comtech Telecommunications Corp., CSRA Inc., Gulfstream Aerospace Corporation and Jet Aviation Holding Inc.
If you look at it from the perspective of how the company interacts with an end customer (the U.S. Department of Defense), then it is a manufacturing company that makes combat vehicles, weapons systems and munitions, military ships, command and control equipment, communications equipment and information technology. In addition to manufacturing these items, the company also operates four businesses that provide other types of services to the U.S. Department of Defense: Comtech Telecommunications Corp., CSRA Inc., Gulfstream Aerospace Corporation and Jet Aviation Holding Inc..
Revenue grew 14% in 2017 primarily due to growth in Information Systems & Technology (IS&T) and Marine Systems (MS). Combat Systems (CS) revenue fell 1% while Aerospace grew 4%. Comtech Telecommunications acquired in 2016 added $1 billion in revenue. Gulfstream delivered 23 more jets in 2017 than 2016 resulting in more revenue but lower margins.
Aerospace is the largest segment contributing 55% of 2017 sales. CS is second with 18% followed by MS at 16%, IS&T at 12% with Comtech making up just 3% of sales for 2017 but expected to grow rapidly in future years as investments are made to grow this business further.
Conclusion
The company is a conglomerate that operates in the aerospace, defense and communications segments. It has grown through acquisition over the years with an emphasis on producing products for the U.S. military. The company designs, builds and sells combat vehicles, weapons systems, munitions, military ships and other equipment while also providing services such as communication services through its subsidiary companies like Comtech Telecommunications Corp. or CSRA Inc., which provides information technology support to government agencies like NASA or Department of Veterans Affairs (VA).
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