The General Dynamics Land Systems – Canada factory is seen in London, Ontario, Canada October 23, 2018. REUTERS/Chris Helgren/File photo Purchase Licensing Rights , opens new tab

July 23 (Reuters) – General Dynamics’ (GD.N) , opens new tab second-quarter profit and revenue topped analyst estimates on Wednesday, aided by robust earnings from the marine segment and higher business jet deliveries.

Shares of the company rose nearly 3% in premarket trading.

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The Gulfstream jet maker’s quarterly adjusted profit came in at $3.74 per share, compared with analysts’ estimates of $3.53 per share, according to data compiled by LSEG.

General Dynamics’ aerospace segment is recovering from supply chain woes and longer certification times, and was able to ramp up deliveries during the quarter ended June 29.

The segment’s aircraft deliveries hit 38 in the second quarter, compared with 37 in the same period a year ago. In the first quarter, the company delivered 36 Gulfstream jets.

The unit’s new bookings during the quarter were 1.3 times its billing, indicating a strong order book.

Revenue in the aerospace segment rose 4.1% from a year ago.

General Dynamics’ nuclear-powered submarine-making marine systems segment also saw a 22.2% rise in revenue.

During the quarter, the Pentagon had modified a submarine production contract awarded to the company’s marine segment, raising the value multi-fold to $1.85 billion

The company also entered into a new contract with its union members at its submarine-making unit, averting a shortage of skilled labor that has been contributing to delays in U.S. Navy ship building schedules.

The Reston, Virginia-based company’s total quarterly revenue of $1.30 billion also beat Wall Street analysts’ estimates of $1.23 billion.

Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Leroy Leo

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