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www.generaldynamics.com
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Contact: Rob Doolittle
Tel: (703) 876-3199
Email: rdoolittle@gd.com
General Dynamics 3rd Quarter Backlog Jumps $4 Billion; Revenues Increase 9 Percent; Pre-FAS 142 Per Share Earnings Increase 13 Percent
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported 2002 third quarter net earnings of $268 million, or $1.32 per share on a fully diluted basis, on sales of $3.3 billion. Before the impact of FAS 142, which changes the way companies account for goodwill in business combinations, earnings per share increased 13 percent over the third quarter of 2001, when net earnings were $230 million, or $1.13 per share, on sales of $3 billion. (Including the effects of FAS 142, earnings per share in the third quarter of 2002 increased 17 percent.) Net cash provided by operating activities totaled $254 million for the 2002 third quarter. The quarter ended on September 29, 2002.
For the first nine months of 2002, sales were $9.9 billion, compared with $8.7 billion for the first nine months of 2001. Net earnings for this nine-month period were $760 million, or $3.74 per share fully diluted, compared with net earnings of $669 million, or $3.30 per share, for the first nine months of 2001, excluding a non-recurring tax gain recorded in the first quarter of 2001. Net cash provided by operating activities for the first three quarters now totals approximately $592 million.
"This was a very good quarter, with a $4.02 billion increase in our backlog on the strength of major shipbuilding increases and Gulfstream orders. We ended the quarter with a total backlog of $29.5 billion, $21.5 fully funded," said Nicholas D. Chabraja, chairman and CEO of General Dynamics.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 54,000 people worldwide and anticipates 2002 revenues of approximately $14 billion. The company has leading market positions in land and amphibious combat systems, mission-critical information systems and technologies, shipbuilding and marine systems, and business aviation.
General Dynamics
CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
|
Third Quarter |
Nine Months |
|||||||
| 2002 ---------------- |
2001 ---------------- |
2002 ---------------- |
2001 ---------------- |
|||||
| NET SALES | $3,289 | $3,020 | $9,921 | $8,655 | ||||
| OPERATING COSTS AND EXPENSES | 2,881 | 2,644 | 8,738 | 7,574 | ||||
| ---------------- |
---------------- |
---------------- |
---------------- |
|||||
| OPERATING EARNINGS | 408 | 376 | 1,183 | 1,081 | ||||
| INTEREST, NET | (11) | (13) | (34) | (40) | ||||
| OTHER INCOME (EXPENSE), NET | 8 | (5) | 8 | - | ||||
| ---------------- |
---------------- |
---------------- |
---------------- |
|||||
| EARNINGS BEFORE INCOME TAXES | 405 | 358 | 1,157 | 1,041 | ||||
| (BENEFIT) PROVISION FOR INCOME TAXES: | ||||||||
| TAX ADJUSTMENTS | - | - | - | (28) | ||||
| PROVISION | 137 | 128 | 397 | 372 | ||||
| ---------------- |
---------------- |
---------------- |
---------------- |
|||||
| NET EARNINGS | $268 | $230 | $760 | $697 | ||||
| ---------------- |
---------------- |
---------------- |
---------------- |
|||||
| EARNINGS PER SHARE BASIC | ||||||||
| BEFORE TAX ADJUSTMENTS | $1.33 | $1.14 | $3.77 | $3.33 | ||||
| ---------------- |
---------------- |
---------------- |
---------------- |
|||||
| EARNINGS PER SHARE BASIC | ||||||||
| AFTER TAX ADJUSTMENTS | $1.33 | $1.14 | $3.77 | $3.47 | ||||
| ---------------- |
---------------- |
---------------- |
---------------- |
|||||
| BASIC WEIGHTED AVERAGE | ||||||||
| SHARES OUTSTANDING (IN MILLIONS) | 201.6 | 201.5 | 201.5 | 201.0 | ||||
| ---------------- |
---------------- |
---------------- |
---------------- |
|||||
| EARNINGS PER SHARE DILUTED | ||||||||
| BEFORE TAX ADJUSTMENTS | $1.32 | $1.13 | $3.74 | $3.30 | ||||
| ---------------- |
---------------- |
---------------- |
---------------- |
|||||
| EARNINGS PER SHARE DILUTED | ||||||||
| AFTER TAX ADJUSTMENTS | $1.32 | $1.13 | $3.74 | $3.44 | ||||
| ---------------- |
---------------- |
---------------- |
---------------- |
|||||
| DILUTED WEIGHTED AVERAGE | ||||||||
| SHARES OUTSTANDING (IN MILLIONS) | 203.1 | 203.6 | 203.1 | 202.8 | ||||
| ---------------- |
---------------- |
---------------- |
---------------- |
|||||
NET SALES AND OPERATING EARNINGS BY
SEGMENT (UNAUDITED)
(DOLLARS IN MILLIONS)
|
Third Quarter |
Nine Months |
|||||||
| 2002 ---------------- |
2001 ---------------- |
2002 ---------------- |
2001 ---------------- |
|||||
| NET SALES: | ||||||||
| INFORMATION SYSTEMS AND | ||||||||
| TECHNOLOGY | $ 895 | $ 647 | $ 2,717 | $ 1,929 | ||||
| COMBAT SYSTEMS | 707 | 545 | 1,967 | 1,493 | ||||
| MARINE SYSTEMS | 863 | 912 | 2,643 | 2,721 | ||||
| AEROSPACE | 739 | 838 | 2,382 | 2,315 | ||||
| OTHER | 85 | 78 | 212 | 197 | ||||
| ---------------- |
---------------- |
---------------- |
---------------- |
|||||
| TOTAL | $ 3,289 | $ 3,020 | $ 9,921 | $ 8,655 | ||||
| ---------------- |
---------------- |
---------------- |
---------------- |
|||||
| OPERATING EARNINGS: | ||||||||
| INFORMATION SYSTEMS AND | ||||||||
| TECHNOLOGY | $ 119 | $ 59 | $ 296 | $ 180 | ||||
| COMBAT SYSTEMS | 80 | 58 | 216 | 162 | ||||
| MARINE SYSTEMS | 78 | 82 | 215 | 245 | ||||
| AEROSPACE | 100 | 161 | 394 | 462 | ||||
| OTHER | 31 | 16 | 62 | 32 | ||||
| ---------------- |
---------------- |
---------------- |
---------------- |
|||||
| TOTAL | $
408 ---------------- |
$
376 ---------------- |
$
1,183 ---------------- |
$
1,081 ---------------- |
||||
WEBCAST INFORMATION: General Dynamics will webcast its third quarter analyst conference call, scheduled for 11:30 a.m. Eastern Daylight time on Wednesday, October 16, 2002. Those accessing the webcast will be able to listen to management’s discussion of the third quarter, as well as the question and answer session with security analysts.
The webcast will be a listen-only audio broadcast, available at www.generaldynamics.com. A Real Audio player or Windows MediaTM player is required to access the webcast; information about downloading those players is available on the company’s website.
Notice to Netscape Navigator Users: When using Windows Media Player, you are advised to close all internet browser sessions, reopen a browser, and clear the cache before listening to the webcast.
An on-demand replay of the webcast will be available beginning at 2:30 p.m. on October 16, 2002, and will continue for the following 90 days.
If you'd like to hear a recording of the conference by telephone, please call (703) 925-2533; passcode is 6237058. It will be available from 2:30 p.m. on October 16 until midnight on October 30, 2002.
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