Business

July 25, 2012

General Dynamics second quarter profit falls, cuts guidance

General Dynamics said July 24 its second-quarter net income fell 3 percent, and the defense contractor cut its 2012 profit prediction due to contract delays in its IT business.

The entire defense industry is under a cloud because of the potential for big military spending cuts in January. The cuts, which will be automatic unless Congress agrees to an alternative for cutting the deficit, would slash $492 billion from military budgets over a decade. The government would also cut domestic spending by $492 billion over 10 years.

The Falls Church, Va., company earned $634 million in the April-June period, down from $653 million a year ago. On a per-share basis, profit rose to $1.77 from $1.76 because the company had less stock outstanding, which boosts the value of each individual share.

Analysts expected a profit of $1.74 per share, according to a FactSet poll.

Revenue rose less than 1 percent to $7.92 billion from $7.88 billion, in line with analyst estimates. Revenue from the information technology division slid 10 percent to $2.53 billion, hurt by delays in contracts for a division that makes communications products for the military and government. Profit in that division shrank by nearly a quarter.

General Dynamics said it’s likely such delays will continue in the second half of the year, and cut its forecast range for the year’s profit by 10 cents to $7 to $7.10 per share. Analysts expect $7.16 per share.

The company’s revenue from sales of combat systems rose just 1 percent to $2.15 billion, as the government cut back on defense spending.

The aerospace division’s revenue rose 16 percent to $1.59 billion, while marine systems revenue grew 5 percent to $1.65 billion.




All of this week's top headlines to your email every Friday.


 
 

 

Headlines December 22, 2014

News: Report: DOD bomb hunters pried into U.S. firms, citizens - During some of the bloodiest days of U.S. combat in Afghanistan and the roadside bomb threat there, the Pentagon’s Joint IED Defeat Organization “improperly collected” intelligence on U.S. citizens and corporations to try to stem the threat, a Pentagon Inspector General report has found.  ...
 
 

News Briefs December 22, 2014

U.K., Canadian military leaves to join Ebola fight Reservists and troops from Britain and Canada have left for Sierra Leone to help in the battle to contain the Ebola virus outbreak. British officials said Dec. 20 that 16 reservists and 100 regular military personnel left on a morning flight from the Brize Norton military airbase....
 
 
Boeing photograph

Boeing, Malaysia Airlines celebrate 100th 737 delivery

Boeing photograph Boeing and Malaysia Airlines celebrated the direct delivery of the airline’s 100th 737 aircraft at an event in Seattle. Shown here Aminuddin Zakaria, senior vice president, airline engineering group, Malaysi...
 

 

Navy helicopter crashes in Kuwait; all crewmembers ok

A U.S. Navy MH-60S helicopter assigned to Helicopter Sea Combat Squadron 26 (HSC 26) crashed at 11:22 a.m., EST, Dec.21, while on an overland training flight at Camp Buehring, Kuwait. All six personnel aboard the helicopter survived the crash and were transported to nearby medical facilities for evaluation. Three of the six crewmembers sustained minor...
 
 

AMC relocates KC-135 simulator

As Air Mobility Command fields the KC-46A Pegasus, displaced KC-135 Stratotanker pilot simulators will be relocated across the Total Force to maximize simulator access across the mobility enterprise. As a result, AMC, in coordination with the Air National Guard, recently identified four KC-135 pilot flight simulators and one KC-135 Boom Operator Weapons System Trainer to...
 
 

SpaceX completes first milestone for Commercial Crew Transportation System

NASA has approved the completion of SpaceX’s first milestone in the company’s path toward launching crews to the International Space Station from U.S. soil under a Commercial Crew Transportation Capability contract with the agency. During the Certification Baseline Review, SpaceX described its current design baseline including how the company plans to manufacture its Crew Dragon spacecraft...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>