OREANDA-NEWS. General Dynamics (NYSE: GD) today reported 2014 fourth-quarter and full-year results. On revenues of USD 8.4 billion, 2014 fourth-quarter earnings from continuing operations were USD 737 million, an 18.1 percent increase over fourth-quarter 2013. Diluted earnings per share for the quarter was USD 2.19 compared to diluted earnings per share of USD 1.76 in fourth-quarter 2013.

Full-year earnings from continuing operations rose to USD 2.7 billion from USD 2.5 billion in 2013. Diluted earnings per share for the year was USD 7.83, compared to diluted earnings per share of USD 7.03 in 2013. Revenues for 2014 were USD 30.9 billion.

Margins

Company-wide operating margins were 12.8 percent for the fourth quarter, 130 basis points higher than fourth-quarter 2013 margins. For the full year of 2014, operating margins were 12.6 percent, 70 basis points higher than full-year 2013 margins.

Cash

Net cash provided by operating activities was USD 3.7 billion for the full year. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was USD 3.2 billion for the year.

Backlog

The company's total backlog was USD 72.4 billion at the end of 2014, up 58 percent from the end of 2013. The estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was USD 26.7 billion. Total potential contract value, the sum of all backlog components, was USD 99.1 billion at the end of the year.

The Aerospace group experienced increased demand, booking more aircraft orders than any quarter in more than three years. Significant awards received in the quarter from the company's defense groups include USD 435 million for the U.S. Navy's Mobile Landing Platform (MLP) Afloat Forward Staging Base (AFSB), USD 325 million from the Centers for Medicare &Medicaid Services for contact-center services, USD 90 million from the Navy for design work on the next-generation ballistic missile submarine and USD 80 million from the U.S. Army under a foreign military sales contract to upgrade Abrams tanks.

"General Dynamics' performance in 2014 was very strong," said Phebe N. Novakovic, General Dynamics chairman and chief executive officer. "We did what we said we would: increase operating earnings, margins and EPS through a relentless focus on operations and prudent capital deployment.

"In 2014, our earnings from continuing operations rose 7.5 percent, margins increased 70 basis points and EPS increased 11.4 percent compared to last year. We also had excellent free cash from operations of USD 3.2 billion and grew our backlog to more than USD 72.4 billion by year-end, a 58 percent increase over the end of 2013."