General Dynamics first-quarter profit beats expectations

Wed Apr 27, 2016 11:16am EDT
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By Idrees Ali

(Reuters) - General Dynamics Corp (GD.N: Quote), one of the leading U.S. defense contractors, reported higher-than-expected revenue and net income after a strong first quarter for its marine systems division.

Net earnings rose to $717 million, or $2.30 per share, from $716 million, or $2.14 per share, a year earlier.

Analysts polled by Thomson Reuters I/B/E/S had forecast a profit of $2.16 a share.

Revenue fell to $7.72 billion from $7.78 billion but exceeded analysts' estimates of $7.69 billion.

Shares of General Dynamics, whose products include Gulfstream jets, tanks and U.S. Navy ships, were up by about 2.3 percent in morning trading.

The company's slightly lower first-quarter revenue was in part due to a drop in aircraft sales.

The company's aerospace division delivered 27 "outfitted" Gulfstream aircraft, down from 32 a year earlier. An aircraft's outfittings include exterior painting and installation of customer-selected interiors.

The aerospace division had a 5.7 percent decrease in revenue but the marine systems division had a nearly 10 percent increase because of contracts such as $155 million from the U.S. Navy for planning and execution of depot-level maintenance for the USS Essex.   Continued...