General Dynamics Reports Second-Quarter 2014 Results
OREANDA-NEWS. General Dynamics (NYSE: GD) today reported 2014 second-quarter earnings from continuing operations of USD 646 million, or USD 1.88 per share on a diluted basis, compared to second-quarter earnings from continuing operations in 2013 of USD 640 million, or USD 1.81 per diluted share. Second-quarter 2014 revenues were USD 7.5 billion.
There is a charge in the quarter of USD 105 million in discontinued operations for the sale of a business within Combat Systems, which results in net earnings for the second quarter of USD 541 million, or USD 1.58 fully diluted earnings per share.
Company-wide operating margins for the second quarter of 2014 were 12.7 percent, a 40 basis-point improvement when compared to 12.3 percent in second-quarter 2013.
Net cash provided by operating activities in the quarter totaled USD 866 million. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was USD 791 million in second-quarter 2014, or 122 percent of earnings from continuing operations.
The company repurchased 10.7 million outstanding shares in the second quarter, for USD 1.2 billion. Year-to-date, the company has repurchased 25 million outstanding shares, for USD 2.7 billion.
Total backlog at the end of second-quarter 2014 was USD 71.1 billion. Estimated potential contract value, representing management’s estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was USD 28.4 billion. At the end of the quarter, total potential contract value, the sum of all backlog components, was USD 99.5 billion.
Orders in the Aerospace group were strong in the quarter, including healthy activity across the group’s portfolio. Additional significant awards received include a USD 17.8 billion multi-year contract from the U.S. Navy for the construction of 10 additional Virginia-class submarines, USD 645 million for support on the Canadian Maritime Helicopter Project, USD 425 million from the Centers for Medicare & Medicaid Services for contact-center services, USD 290 million from the U.S. Army for the production of 93 Stryker double-V-hulled vehicles and contractor logistics support, and USD 125 million for the construction of an additional product carrier from an affiliate of American Petroleum Tankers.
“General Dynamics’ strong second quarter performance reflects our continued focus on program execution and operational improvements,” said Phebe N. Novakovic, chairman and chief executive officer. “We have a solid building block for the future with an increased defense backlog and robust order activity across the portfolio of Gulfstream business jets.”