John Good

John Good inquired about the trajectory of the munitions business, including the expected duration of its strength, potential production rates, run-rate revenue, and incremental margins compared to overall Combat Systems margins. He also asked about potential knock-on impacts on the business jet supply chain from commercial aerospace production ramps.

Answer

Chairman and CEO Phebe Novakovic expects continued strong demand in munitions due to low inventories, with the business typically operating at 14-15% margins. Regarding the business jet supply chain, Ms. Novakovic noted that while labor is not an issue, some suppliers have ramped more successfully than others, with the focus on capacity throughput and investment, maintaining good quality.