General Dynamics Reports Strong 2Q Earnings
General Dynamics has reported second-quarter earnings from continuing operations of $666 million, or $1.79 per share on a fully diluted basis, compared with 2010 second-quarter earnings from continuing operations of $651 million, or $1.68 per share fully diluted. Revenues in the quarter were $7.9 billion. Net earnings for the second quarter of 2011 were $653 million, compared to $648 million in the second quarter of 2010.
Company-wide operating margins for the second quarter of 2011 were 12 percent, with particularly strong performance in the defense segments. Operating margins for Combat Systems and Information Systems and Technology grew when compared to the year-ago period, and Marine Systems margins remained steady at 10.2 percent.
Customer demand across the company's portfolio of products and services continued in second-quarter 2011. Demand for Gulfstream aircraft and aircraft services was particularly strong, leading to an increase in the Aerospace backlog for a third consecutive quarter. Combat Systems, Marine Systems and Information Systems and Technology also received key orders, including $285 million from the U.S. Army for Hydra-70 rockets, $800 million for the U.S. Navy’s Mobile Landing Platform program, $330 million to provide the IT infrastructure for the relocation of the Department of Homeland Security’s headquarters to the St. Elizabeths Hospital Campus and $55 million from the U.S. Army for production of 6,250 Rifleman and 100 Manpack radios, as part of the Joint Tactical Radio System Handheld, Manpack, Small Form Fit program.
Funded backlog increased to $44.3 billion at the end of second-quarter 2011. The company’s total backlog at the end of the second-quarter 2011 was $57.1 billion, and the estimated potential contract value was an additional $21.2 billion, which represents management’s estimate of value under unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options.
Net cash provided by operating activities in the quarter totaled $749 million. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $658 million for the period, or approximately 100 percent of earnings from continuing operations.
(Source: GD Press Release)