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: Yemen chaos threatens U.S. counterterror efforts, including drone programĀ - The White House’s strategy for fighting al-Qaeda in Yemen – repeatedly presented as a model by President Obama – was left in tatters Thursday by the resignation of the man who personally approved U.S. drone strikes in the country and the collapse of its central...
 
 

News Briefs January 23, 2015

NATO detects key Russian military equipment in east Ukraine NATO’s top commander in Europe says the alliance has detected the presence of key Russian military equipment in eastern Ukraine that, in the past, has accompanied large inflows of Russian troops. Gen. Philip Breedlove told a news conference Jan. 22 in Brussels that Russian electronic warfare...
 
 
Boeing photograph

Boeing Maritime Surveillance Aircraft ready for demonstration flights

Boeing photograph The Boeing Maritime Surveillance Aircraft program is ready for customer demonstration flights, having completed the baseline ground and flight testing of the aircraft mission systems. The Boeing Maritime Surve...
 

 
Air Force photograph by Jacqueline Cowan

F135 test demonstrates success of AEDC workshare initiative

Air Force photograph by Jacqueline Cowan Aerospace Testing Alliance Test Engineer Darren Carroll, pictured in front, assists as Pratt & Whitney Test Engineer Ronnie Thomas does a borescope inspection of the fan on the F135 ...
 
 
U.S. Air Force photo by Master Sgt. Kevin J. Gruenwald

40 years of Red Flag at Nellis

U.S. Air Force photo by Master Sgt. Kevin J. Gruenwald A flight of F-15 Eagles and F-16 Fighting Falcons Aggressors fly in formation over the Nevada Test and Training Ranges June 5, 2008. The proposal for Red Flag came in early...
 
 
Lockheed Martin photograph

Navy gears up to order production of 29 aircraft diagnostic systems

Lockheed Martin photograph Petty Officers Third Class Ira Schwartz assigned to Fleet Readiness Center Southeast at Naval Air Station Jacksonville, Fla., left, and Devin Riley from Fleet Readiness Center Mid-Atlantic at Naval Ai...
 




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>