General Dynamics' Profit Up 32 Percent
From the Associated Press
General Dynamics of Falls Church said first-quarter profit rose almost 32 percent, led by big sales increases in the division that makes armored vehicles, tanks and combat tools.
Profit was $572 million ($1.42 a share), up from $434 million ($1.06 per share) in the first quarter of 2007. Sales came in at $7 billion, up 11 percent.
"General Dynamics' performance in the first quarter of 2008 was excellent," CEO Nicholas Chabraja said in a statement.
Like much of the defense industry, General Dynamics has benefited from the military's need for supplies to fight battles in Iraq and Afghanistan. The company is participating in a massive Army project to retrofit and built military vehicles with stronger armor to ward off roadside bombs.
Sales in the combat division rose more than 27 percent, to $1.99 billion. Marine systems, which builds submarines and ships, posted a nearly 10 percent sales increase, to $1.37 billion, while information systems and technology sales slipped 1.3 percent, to $2.35 billion.
General Dynamics also saw sales gain 16.9 percent, to $1.27 billion, in its aircraft division, which consists primarily of the Gulfstream private jet company. International investors in cash-rich places like Russia, the Middle East and China are buying up Gulfstream jets.
April 23, 2008; 10:52 AM ET
Aerospace & Defense
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