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 September 2, 2014

News: Debris yields clues that pilot never ejected - When investigators were finally able to safely enter the crash site of an F-15C “Eagle” fighter jet on the afternoon of Aug. 27, they made a grim discovery that concluded more than 30 hours of searching – the pilot never managed to eject from the aircraft.  ...
 
 

News Briefs September 2, 2014

Pentagon: Iraq operations cost $560 million so far U.S. military operations in Iraq, including airstrikes and surveillance flights, have cost about $560 million since mid-June, the Pentagon said Aug. 29. Rear Adm. John Kirby, the Pentagon press secretary, said the average daily cost has been $7.5 million. He said it began at a much lower...
 
 

Unmanned aircraft partnership reaches major milestone

A team of research students and staff from Warsaw University of Technology have successfully demonstrated the first phase of flight test and integration of unmanned aircraft platforms with an autonomous mission control system. The demonstration marks a significant milestone in a partnership between the university and Lockheed Martin that began earlier this year. This is...
 

 

Raytheon delivers first Block 2 Rolling Airframe Missiles to US Navy

Raytheon delivered the first Block 2 variant of its Rolling Airframe Missile system to the U.S. Navy as part of the company’s 2012 Low Rate Initial Production contract. RAM Block 2 is a significant performance upgrade featuring enhanced kinematics, an evolved radio frequency receiver, and an improved control system. “As today’s threats continue to evolve,...
 
 
Courtesy photograph

Two Vietnam War Soldiers, one from Civil War to receive Medal of Honor

U.S. Army graphic Retired Command Sgt. Maj. Bennie G. Adkins and former Spc. 4 Donald P. Sloat will receive the Medal of Honor for actions in Vietnam. The White House announced Aug. 26 that Retired Command Sgt. Maj. Bennie G. A...
 
 

Sparks fly as NASA pushes limits of 3-D printing technology

NASA has successfully tested the most complex rocket engine parts ever designed by the agency and printed with additive manufacturing, or 3-D printing, on a test stand at NASA’s Marshall Space Flight Center in Huntsville, Ala. NASA engineers pushed the limits of technology by designing a rocket engine injector – a highly complex part that...
 




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>