General Dynamics 2Q profit rises slightly

An Arleigh-Burke-class destroyer is worked on at Bath Iron Works, in Bath in May 2009.
AP | AP
An Arleigh-Burke-class destroyer is worked on at Bath Iron Works, in Bath in May 2009.
The Associated Press
Posted July 27, 2011, at 8:28 a.m.

FALLS CHURCH, Va. — General Dynamics says its second-quarter earnings rose slightly as lower costs somewhat offset sales declines across several business units.

The defense contractor said Wednesday profits rose to $653 million, or $1.77 per share, in the April-June period. That’s up from $648 million, or $1.69 per share, a year earlier.

Revenue fell 3 percent to $7.88 billion. Costs fell 1 percent.

General Dynamics is one of Maine’s largest employers, with roughly 7,000 employees in the state through its operations at Bath Iron Works and at its Saco armaments division.

FactSet says analysts expected a profit of $1.73 per share on revenue of $8.28 billion.

General Dynamics Corp., which is based in Falls Church, Va., says revenue fell in its core aerospace, marine systems and information systems and technology units. Revenue was up slightly in the company’s combat unit.

The company’s total order backlog at the end of the quarter was $57.1 billion.

In related news, Maine Sen. Susan Collins said Tuesday that the Navy and Bath Iron Works have come to terms on the second and third ships of a new class of destroyers to be built at the Maine shipyard.

Collins, a member of the Armed Services Committee, said she received word from Sean Stackley, the Navy’s assistant secretary for research, development and acquisition.

The Navy has scaled back the number of the stealthy warships to three, so the contracts for each of them are key to keeping shipbuilders busy. The Zumwalt-class destroyers feature composite materials, electric-drive propulsion, an unconventional hull and special 155 mm guns that can hit targets from 100 miles away.

Following completion of the truncated program, Bath Iron Works will return to building an updated version of the Arleigh Burke destroyer.

http://bangordailynews.com/2011/07/27/business/gd-reports-2q-earnings-up/ printed on September 17, 2014