GD sees profits slip in Q1

General Dynamics on Wednesday reported a drop in its first quarter profits, down to $564 million, compared to $618 million a year earlier.

GD, one of Maine’s largest employers through its operations at Bath Iron Works and the Saco Armament and Technical Products division, pointed to slow government contracts as part of the reason for the drop.

A section of the next-generation DDG 1000 Zumwalt-class destroyer under construction at Bath Iron Works is shown in this April 4, 2012 photo. (BDN/Christopher Cousins)

Those profits were on revenues of $7.7 billion in the first quarter, down from $7.8 billion in the first quarter of 2011.

“General Dynamics’ first-quarter performance reflects continued growth in our Aerospace segment as well as the challenges presented by today’s dynamic U.S. federal procurement environment. We are continuing to see slower-than-anticipated award activity, particularly relating to our (information systems and technology) programs with validated requirements and approved funding,” said Jay L. Johnson, chairman and CEO, in a GD earnings release.

The company did note some “significant awards” received in the quarter, including include construction contracts for two new surface ships, a DDG 51-class destroyer and a third Mobile Landing Platform (MLP) auxiliary ship.

The destroyer will be built at BIW in Maine. The contract was for $665 million.

GD employs roughly 6,100 people in Maine through its two divisions here.