General Dynamics Profit Up 25 Percent
From the Associated Press
Defense contractor General Dynamics said second-quarter profit rose 25 percent, to $641 million ($1.60 a share) from $513 million ($1.26), boosted by higher sales of armored vehicles and tanks. The Falls Church-based company said revenue rose nearly 11 percent, to $7.30 billion.
Looking ahead, the company expects 2008 earnings from continuing operations to be in the range of $6.00 to $6.05 per share, fully diluted. For the year, analysts expect General Dynamics to earn $5.91 per share on $29.65 billion in revenue. Company CEO Nicholas Chabraja said in January that he expects per share earnings of between $5.55 and $5.65 for 2008.
General Dynamics, which makes tanks, submarines, warships and Gulfstream private jets, has reaped big profits in recent quarters as the Pentagon scrambles to buy and replace equipment for wars in Iraq and Afghanistan. The company is one of several contractors working on the mine resistant ambush protected vehicles, also known as MRAP, that are in high demand from military commanders to protect troops from roadside bombs. The Pentagon made the program its top weapons buying priority last year.
The company also expects robust sales of its corporate jets, primarily in overseas markets such as China and the Middle East. The company began taking orders earlier this year on its newest and widest ranging plane, the G650.
July 23, 2008; 10:15 AM ET
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