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 January 23, 2015

News: Two Marines identified in deadly California helo crash - Two Marine Corps officers killed when their helicopter crashed during a training exercise in the Southern California desert were remembered Jan. 25 as talented pilots. Greek F-16 crashes in Spain during NATO exercise - Ten people died Jan. 26 after a Greek air force F-16 jet crashed...
 
 

News Briefs January 26, 2015

Navy wants to increase use of sonar-emitting buoys The U.S. Navy is seeking permits to expand sonar and other training exercises off the Pacific Coast, a proposal raising concerns from animal advocates who say that more sonar-emitting buoys would harm whales. The Navy now wants to deploy up to 720 sonobuoys about 12 miles off...
 
 
Air National Guard photograph by SSgt. Annie Edwards

ANG conducts air refueling training with NATO allies in Germany

Air National Guard photograph by SSgt. Annie Edwards A NATO E-3A AWACS aircraft approaches a Utah Air National Guard KC-135R Stratotanker for air refueling during a training flight over Germany on Jan. 13, 2015. Nearly 30 airme...
 

 
Air Force photograph by SrA. Armando A. Schwier-Morales

Ramstein Airmen train with French air force

Air Force photograph by SrA. Armando A. Schwier-Morales Two U.S. Air Force pilots and a French air force navigator discuss the route to the drop zone during a simulated low-level drop Jan. 21, 2015, at Orleans – Bricy Air...
 
 

Marines receive first F-35C Lightning II carrier variant

The first F-35C Lightning II, carrier variant, for the U.S. Marine Corps touched-down on the flight line at Eglin Air Force Base, Fla., Jan. 13, from the Lockheed Martin plant in Fort Worth, Texas, to begin training in support of carrier-based operations. U.S. Marine Lt. Col. J.T. Ryan, Marine Fighter Attack Squadron 501 detachment commander...
 
 

VA announces single regional framework under MyVA initiative

The Department of Veterans Affairs announced Jan. 26 that it is taking the first steps under the MyVA initiative to realign its many organizational maps into one map with five regions to better serve Veterans. The new regions under the MyVA alignment will allow VA to begin the process of integrating disparate organizational boundaries into...
 




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>