2941 Fairview Park Drive, Suite 100
Falls Church, Virginia 22042-4513
Contact: Rob Doolittle
Tel: 703 876 3199
General Dynamics Reports Second-Quarter 2011 Results
- EPS increases 6.5 percent
- Management raises guidance for full-year EPS
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported second-quarter 2011 earnings from continuing operations of $666 million, or $1.79 per share on a fully diluted basis, compared with 2010 second-quarter earnings from continuing operations of $651 million, or $1.68 per share fully diluted. Revenues in the quarter were $7.9 billion.Net earnings for the second quarter of 2011 were $653 million, compared to $648 million in the second quarter of 2010.
operating margins for the second quarter of 2011 were 12 percent, with
particularly strong performance in the defense segments.Operating margins for Combat
Systems and Information Systems and Technology grew when compared to the
year-ago period, and Marine Systems margins remained steady at 10.2 percent.
Customer demand across our portfolio of products and services continued in second-quarter 2011.Demand for Gulfstream aircraft and aircraft services was particularly strong, leading to an increase in the Aerospace backlog for a third consecutive quarter. Combat Systems, Marine Systems and Information Systems and Technology also received key orders, including $285 million from the U.S. Army for Hydra-70 rockets, $800 million for the U.S. Navy's Mobile Landing Platform program, $330 million to provide the IT infrastructure for the relocation of the Department of Homeland Security's headquarters to the St. Elizabeths Hospital Campus and $55 million from the U.S. Army for production of 6,250 Rifleman and 100 Manpack radios, as part of the Joint Tactical Radio System Handheld, Manpack, Small Form Fit program.
Funded backlog increased to $44.3 billion at the end of second-quarter 2011. The company's total backlog at the end of the second-quarter 2011 was $57.1 billion, and the estimated potential contract value was an additional $21.2 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 $749 million.Free cash flow from operations, defined as
net cash provided by operating activities less capital expenditures, was $658
million for the period, or approximately 100 percent of earnings from
"The strength of General Dynamics' diverse portfolio and our continued commitment to disciplined execution and efficient cash conversion is evident in our operating results this quarter," said Jay L. Johnson, chairman and chief executive officer. "Based on the company's year-to-date results and our outlook for the second half of the year, we now expect full-year 2011 earnings from continuing operations to be $7.15 to $7.20 per share, fully diluted."
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 88,000 peopleworldwide. 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 second-quarter securities analyst conference call, scheduled for 9 a.m. Eastern Time on Wednesday, July 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 July 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 78844241. The phone replay will be available from 12 p.m. July 27 until midnight August 3, 2011.