FALLS CHURCH, Va. (AP) – Military contractor General Dynamics Corp., parent of Bath Iron Works, said Wednesday its second-quarter earnings rose 84 percent, driven by demand for tanks, armored vehicles and business jets, and raised its full-year earnings outlook.

The manufacturer of Stryker armored vehicles, Abrams tanks, Gulfstream aircraft and weapons guidance systems said net income rose to $636 million, or $1.56 per share, in the April-June period versus $345 million, or 85 cents per share, in the year-ago period. The latest quarter included earnings of $216 million from discontinued operations.

Earnings from continuing operations rose to $420 million, or $1.03 per share, from $338 million, or 83 cents per share, in last year.

Analysts polled by Thomson Financial expected earnings, on average, of $1 per share.

Revenue rose 16 percent to $5.93 billion from $5.14 billion a year ago, beating the Wall Street forecasts for $5.77 billion.

The company’s combat systems unit delivered a 40 percent increase in operating earnings to $172 million on 29 percent higher sales of $1.44 billion.

The aerospace division, which includes Gulfstream, saw operating earnings soar 33 percent to $166 million on 29 percent higher sales of $1.07 billion.

The largest component of sales and profit, the information systems and technology unit, reported 3.1 percent higher operating income of $232 million as sales rose 7.2 percent to $2.16 billion.

General Dynamics said it now expects full-year earnings from continuing operations of $4.15 per share, up sharply from its previous forecast range of $3.90 to $3.92 per share, but in line with the average of Wall Street estimates.

Its shares fell 34 cents to $68.01 in morning trading on the New York Stock Exchange. They are still closer to the upper end of their 52-week range of $55.09 to $69.62.

Copy the Story Link