Shutdown lingers in the background for defense contractors

The word “shutdown” was not said Wednesday during General Dynamics’ fourth quarter and year-end earnings call with investors, but the recent five-week closure of several civilian agencies was certainly alluded to in an analyst question about “a lot of uncertainty and volatility” in the political environment.

And like some of her industry counterparts, GD CEO Phebe Novakovic does not sound all that concerned that disagreements over many civilian budgets will bleed over into those for the Defense Department, which is fully funded for fiscal 2019 and stayed open during the recent budget impasse.