General Dynamics 2Q profit rises slightly
Thursday, July 28, 2011
FALLS CHURCH, Va. (AP) — General Dynamics Corp. said Wednesday that its second-quarter earnings rose slightly as lower costs somewhat offset revenue declines across several business units.
The defense contractor’s earnings beat Wall Street expectations while revenue came in short. It raised its full year earnings expectations.
For the April-June period, the company said its net income rose to $653 million, or $1.77 per share, in the April-June period. That’s up from $648 million, or $1.69 per share, a year earlier.
Revenue fell 3 percent to $7.88 billion from $8.10 billion. Costs fell 1 percent. Margins stayed flat.
Analysts polled by FactSet Research expected a profit of $1.73 per share on revenue of $8.28 billion.
The company now expects earnings from continuing operations to be between $7.15 and $7.20 per share, compared with an earlier range of $7 to $7.10 per share. Analysts were forecasting $7.13 a share.
Its shares fell $1.69, or 2.4 percent, to close at $68.63 Wednesday as the broader market pulled back.
General Dynamics Corp., which is based in Falls Church, Va., said revenue fell in its core aerospace, marine systems and information systems and technology units. Revenue was up slightly in the company’s combat unit.
The company’s total order backlog at the end of the quarter was $57.1 billion. General Dynamics said demand for Gulfstream aircraft and services were particularly strong. Combat, marine and IT units also received key orders during the quarter.