General Dynamics Reports Quarterly Gain

General Dynamics said its net income for the fourth quarter was $612 million, or $1.57 per share, compared with $579 million ($1.42) during the same time a year ago.

Sales for the Falls Church defense contractor were up slightly to $7.9 billion from $7.5 billion. For the year, the company had a profit of $2.5 billion ($6.17) on sales of $29.3 billion. That compared with net income of $2.1 billion ($5.08) on sales of $27.2 billion in 2007.

Executives said the company’s total backlog grew by $13.6 billion in the fourth quarter. Its backlog was boosted by on order from the U.S. Navy for eight additional Virginia-class nuclear-powered submarines.

“General Dynamics continued to perform well in the fourth quarter of 2008,” said Nicholas D. Chabraja, chairman and chief executive officer. “Sales increased in the Aerospace, Marine Systems and Information Systems and Technology groups when compared to the year-ago period, and company-wide operating margins increased 30 basis points in the quarter.”

--Dana Hedgpeth