2941 Fairview Park Drive, Suite 100
Falls Church, Virginia 22042-4513
Contact: Rob Doolittle
Tel: 703 876 3199
General Dynamics Reports First-Quarter 2011 Results
- Earnings from continuing operations increase to $618 million
- Company-wide operating margins increase to 11.9 percent
FALLS CHURCH, Va. –
FALLS CHURCH, Va. –General Dynamics (NYSE: GD) today reported first-quarter 2011 earnings from continuing operations of $618 million, or $1.64 per share on a fully diluted basis, compared with 2010 first-quarter earnings from continuing operations of $599 million, or $1.54 per share fully diluted. Revenues increased over the year-ago period to $7.8 billion.Net earnings for the first quarter of 2011 were $618 million, compared to $597 million in the first quarter of 2010.
Company-wide operating margins for the first quarter of 2011 were 11.9 percent, compared to 11.8 percent in first-quarter 2010.Operating margins for Aerospace, Combat Systems and Marine Systems grew when compared to the year-ago period.Backlog
Funded backlog at the end of first-quarter 2011 was $43.9 billion. The Aerospace backlog increased for a second consecutive quarter, driven by continued demand for Gulfstream aircraft. Combat Systems and Information Systems and Technology also received several notable orders in the first quarter, including $325 million from a foreign military customer for combat vehicle structures and $295 million for initial production of equipment for the second increment of the U.S. Army’s WIN-T next-generation battlefield communications network.The company’s total backlog at the end of the first quarter 2011 was $57.6 billion, and the estimated potential contract value was an additional $20.6 billion, which represents management’s estimate of value under unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options.
cash provided by operating activities in the quarter totaled $327 million.Free cash flow from operations, defined as
net cash provided by operating activities less capital expenditures, was $266
million for the period.
Dynamics’ first-quarter performance reflects the stability and relevance of our
defense programs and continuing demand for our global business-aviation
products and services,” said Jay L. Johnson, chairman and chief executive
officer. “By remaining focused on execution and leveraging the strength of our
diverse portfolio, we delivered a solid first-quarter and remain on track for
another strong year.”
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 90,000 people worldwide.The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies.More information about the company is available on the Internet at www.generaldynamics.com.
Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
All forward-looking statements speak only as of the date they were made.The company does not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
WEBCAST INFORMATION: General Dynamics will webcast its first-quarter securities analyst conference call, scheduled for 9 a.m. Eastern Time on Wednesday, April 27, 2011. The webcast will be a listen-only audio event, available at www.generaldynamics.com. An on-demand replay of the webcast will be available by 12 p.m. Eastern Time on April 27 and will continue for 12 months. To hear a recording of the conference call by telephone, please call 888-286-8010 (international: 617-801-6888); passcode 25523674. The phone replay will be available from 12 p.m. April 27 until midnight May 4, 2011.
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