Earnings report: General Dynamics Corp. (GD), third quarter
THE TAKE: General Dynamics reported an 8 percent decrease in profits for the third-quarter. Revenue in the company’s Aerospace division increased 30 percent, but revenue fell in the company’s Combat Systems and Information Systems and Technology unit. Margins in the IT unit fell to 11.4 percent from 12.7 percent last year mostly because of a $25 million charge to revalue part of its “ruggedized” computer inventory.
Revenue: $7.9 billion, up 1 percent from $7.35 billion in the third quarter of 2011
Net income: $600 million, down 8 percent from $652 million a year ago
Diluted earnings per share: $1.70 per share, down from $1.80 per share
Special items: $25 million charge in the company’s Information Systems and Technology group to revalue “ruggedized”computer inventory
THE COMPANY’S TAKE: “General Dynamics made notable progress on several core programs in the third quarter, including certification of the Gulfstream G650 and G280, and successful evaluations of key tactical communications systems leading to additional production awards,” Jay L. Johnson, chairman and CEO, said in a statement. “The entire team at General Dynamics remains focused on efficient execution and maximizing profitability.”
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