EarningsBBD competitor GD posts its earnings results today. GD is Bombardier's biggest competitor in the business jet market so we can get some idea what's going on in that industry by watching GD and its Gulfstream Aerospace unit.
Here's a shortened version of some of the highlights. Scroll up to the bottom for a view of GD's Aerospace deliveries. I haven't seen much reference to order intake here. We didn't hear much about Gulfstream at Farnborough since GD stopped attending in the years after 9-11.
Anyone interested in more, or listening to the conference call which is going on at this moment, visit www.gd.com
General Dynamics Reports Solid Performance in Second Quarter 2010
- Earnings from continuing operations increase by 4.8 percent to $651 million
- Management raises guidance for full-year EPS
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported second-quarter 2010 earnings from continuing operations of $651 million, or $1.68 per share on a fully diluted basis, compared to 2009 second-quarter earnings from continuing operations of $621 million, or $1.61 per share fully diluted. Revenues in the quarter were $8.1 billion. Operating earnings grew by 4.2 percent over second-quarter 2009, to $985 million.
Net earnings for the second quarter of 2010 were $648 million, compared to $618 million in the year-ago period. Net earnings on a per-share, fully diluted basis were $1.67 in the current quarter, an increase of 4.4 percent over the year-ago period.
Margins
Company-wide operating margins in the quarter were 12.2 percent, an increase of 50 basis points over second-quarter 2009. Aerospace and Combat Systems margins drove that improvement, increasing 160 and 150 basis points respectively. In comparison to first-quarter 2010, company-wide operating margins increased 40 basis points overall on improvements in Aerospace, Combat Systems and Marine Systems performance. Information Systems and Technology margins remained steady at 10.5 percent.
Backlog
The company’s funded backlog at the end of the quarter was $45.9 billion and total backlog was $62.5 billion. Orders received in the quarter underscored the continuing global demand for the company’s products and services, including Gulfstream business jets; Stryker, LAV III and Scout SV armored vehicles; Hydra-70 rockets, motors and warheads; engineering, support and lead-yard services for several shipbuilding programs; and information technology, communications and computing products and services.
In addition to the backlog, the company’s estimated potential contract value – management’s estimate of the value of unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options – grew to $21.7 billion at the end of second-quarter 2010, a 28 percent increase over the prior quarter.
Cash
Net cash provided by operating activities in the second quarter totaled $477 million. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $414 million for the period.
“General Dynamics’ focus on operational excellence is reflected in the operating margins of each of our business groups,” said Jay L. Johnson, chairman and chief executive officer. “We continue to increase efficiency, improve productivity and drive cost out of our processes in order to deliver the highest-quality, most-affordable products and services to our customers.
“Based on our performance this quarter and a clearer view of what the second half of the year may hold, we now expect full-year 2010 earnings from continuing operations to be $6.60 to $6.65 per share, fully diluted,” Johnson said.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 91,000 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at www.generaldynamics.com.
Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. Actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
All forward-looking statements speak only as of the date they are made. The company does not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
General Dynamics will webcast its second-quarter securities-analyst conference call at 11:30 a.m. Eastern Time on Wednesday, July 28, 2010. The webcast will be a listen-only audio event, available at www.generaldynamics.com. An on-demand replay of the webcast will be available by 1:30 p.m. July 28 and will continue for 12 months. To hear a recording of the conference call by telephone, please call 888-286-8010 (international: 617-801-6888); passcode 72339413. The phone replay will be available from 1:30 p.m. July 28 until midnight August 4, 2010.
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Exhibit E