- Summary: Defense contractor General Dynamics Corp.'s (GD) second-quarter profit increased 84%, with strong demand for armored vehicles in Middle East combat zones and Gulfstream corporate jets leading gains across all four of its business segments. Net income of $636 million, or $1.56 a share, compared with $345 million, or 85 cents a share, a year earlier. Revenue rose 16% to $5.93 billion. General Dynamics raised its forecast for full-year earnings from continuing operations to $4.15 a share from a previous projection of $3.90 to $3.93 a share. (Estimates for the quarter had been for revenue of $5.76B and EPS $1.00. The projection matched what many analysts were estimating, but raised some disappointment from investors hoping for a rosier forecast. As a result, General Dynamics shares fell 36 cents, or 0.5%, to $67.99 in NYSE composite trading. In terms of divisional sales, GD said sales from its combat-systems division increased 29% to $1.44 billion, while sales in its aerospace segment rose 29% to $1.07 billion. The company's marine-systems segment posted sales of $1.27 billion, up 7.5% from a year earlier, while its information systems and technology group saw sales rise 7.2% to $2.16 billion.
- Comment on related stocks/ETFs: Regular Seeking Alpha contributor Yaser Anwar includes GD in his anti-terrorism portfolio, which is comprised of companies he feels should serve as a hedge against terrorist activities (which can often shake markets). For the full article, click here.
General Dynamics Profits Up 84% -- Apparently Not Enough for Investors
Jul 20 2006, 08:15 | about: GD
BOOKMARKED / READ LATER
Added to your bookmarks on the Seeking Alpha homepage
Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):