Phebe N Novakovic News

The board of directors of General Dynamics has elected Mark Malcolm to be a director of the corporation, effective August 5, 2015. He has been appointed to serve on the Audit Committee. Malcolm is the president and chief executive officer of Tower International, Inc. (NYSE: TOWR), a position he has held since August 2007. Tower International is one of the largest independent global suppliers of engineered automotive structural metal components and assemblies for major vehicle manufacturers. Previously Malcolm worked for Ford Motor Company for 28 years, with his final position as executive vice president and controller of Ford Credit, from 2004 to 2005.

General Dynamics stated that Larry R. Flynn, president of Gulfstream Aerospace Corp., has informed the corporation of his intention to retire on June 30, for health reasons. Mark L. Burns, president of Product Support for Gulfstream, will succeed Flynn as president of Gulfstream. Phebe N. Novakovic expressed the company's support of Flynn's decision and appreciation for his service. "Larry Flynn has made significant contributions to General Dynamics and Gulfstream during his long career, most recently with the introduction of three new aircraft in 2014. Under his leadership, he has positioned Gulfstream for continued success as a global leader in the business-jet market," Novakovic said. As announced in February, Burns will become president of Gulfstream on July 1, 2015. Also, Joseph T.

The board of directors of General Dynamics has elected S. Daniel Johnson to be executive vice president, Information Systems and Technology, effective January 1, 2015, to succeed David K. Heebner, who has informed the company of his intention to retire on December 31, 2014. Johnson will also continue in his role as president of General Dynamics Information Technology, a business unit of General Dynamics. In announcing the board's action, Phebe N. Novakovic, chairman and chief executive officer, said, "David Heebner has had an exemplary career at General Dynamics, having served in leadership positions in all of our defense businesses and at corporate headquarters. He has been an invaluable resource for the entire General Dynamics team and he will be greatly missed.

The board of directors of General Dynamics has elected Rudy deLeon to be a director of the corporation, effective September 30, 2014. DeLeon is a senior fellow with the Center for American Progress, a position he has held since November 2007. He began his career with the federal government, where he served for 25 years until 2001. In his final position as deputy secretary of defense, he was the chief operating officer at the Pentagon, a member of the Deputies Committee of the National Security Council and a member of the National Partnership Council. He was also undersecretary of defense for Personnel and Readiness from 1997 to 2000, and he was undersecretary of the U.S. Air Force from 1994 to 1997.

General Dynamics today reported 2014 second-quarter earnings from continuing operations of $646 million, or $1.88 per share on a diluted basis, compared to second-quarter earnings from continuing operations in 2013 of $640 million, or $1.81 per diluted share. Second-quarter 2014 revenues were $7.5 billion. There is a charge in the quarter of $105 million in discontinued operations for the sale of a business within Combat Systems, which results in net earnings for the second quarter of $541 million, or $1.58 fully diluted earnings per share. Company-wide operating margins for the second quarter of 2014 were 12.7 percent, a 40 basis-point improvement when compared to 12.3 percent in second-quarter 2013. Net cash provided by operating activities in the quarter totaled $866 million.

General Dynamics reported third-quarter 2013 net earnings of $651 million, or $1.84 per share on a diluted basis, on revenues of $7.8 billion. This compares to 2012 third-quarter net earnings of $600 million, or $1.70 per diluted share, on revenues of $7.9 billion. Third-quarter 2013 operating earnings rose $52 million to $957 million, a 5.7% increase over the year-ago quarter. Company-wide operating margins for the third quarter of 2013 were 12.3%, 90 basis points higher than third-quarter 2012 margins, reflecting operating-performance improvement in the company’s Aerospace, Combat Systems and Information Systems and Technology groups over the year-ago period.

General Dynamics Board Elects Novakovic to Be President and Chief Operating Officer. General Dynamics announced that its board of directors has elected Phebe N. Novakovic, 54, to be the corporation's president and chief operating officer reporting to Jay L. Johnson, chairman and chief executive officer. The appointment is effective May 2, 2012. In announcing the board's action Johnson said, "The board and I are pleased to promote Phebe to fulfill these new responsibilities. She has performed well in her role as executive vice president of Marine Systems and previously as senior vice president of planning and development, and is more than ready to assume a larger role in the corporation. Novakovic became an executive vice president of General Dynamics in May 2010.