General Dynamics revenue up, earnings down
- October 28, 2009
General Dynamics Corp. reported a 9.8 percent drop in quarterly income, primarily from a production furlough at the company’s Gulfstream Aerospace subsidiary.
The Falls Church-based aerospace and defense contractor reported $572 million in profit for the third quarter, compared with $634 million in the same period the year before.
Still, the company’s revenues increased 8.1 percent to $7.72 billion during the quarter, and CEO Jay L. Johnson increased the company’s earnings per share outlook for the year to $6.15 and $6.20 per share, up about 10 cents.
The company’s revenues increased 26.9 percent in its Combat Systems segment, 8.8 percent in its Information Systems and Technology segment, and 8.1 percent in its Marine Systems group.
“The enduring strength of General Dynamics’ diverse portfolio is apparent in the company’s third-quarter 2009 financial results,” Johnson said in a statement. “The company performed well despite the impact of reduced aircraft production at Gulfstream Aerospace. Continuing customer demand for our defense-related products coupled with our commitment to financial performance and effective execution produced strong margins and cash generation in the quarter.”