GD Reports Good Quarter

General Dynamics Corp., maker of nuclear submarines, tanks and destroyers, reported an 11 percent increase in second-quarter profits, meeting Wall Street targets, on gains in its combat systems operations. The company, which is battling rival defense contractor Northrop Grumman Corp. to take over Newport News Shipbuilding Inc., posted net earnings of $227 million, or $1.12 per share, up from $204 million, or $1.01 per share, a year earlier. Analysts had expected a profit of $1.12 per share, with estimates ranging from $1.08 to $1.15, according to tracking firm Thomson Financial/First Call. Sales rose to $2.96 billion from $2.62 billion a year earlier. Cash flow from operations for the second quarter was $208 million. "At the year's halfway point, we're right on track to achieve our goals for 2001," said Nicholas Chabraja, chairman and chief executive. "The Bush administration defense budget request for fiscal year 2002, submitted to Congress in late June, funds all of our core programs," he said in a prepared statement. "We're in good position for continued growth and success." - (Reuters)