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.


Only subscribers are eligible to post comments. Please subscribe or to participate in the conversation. Here’s why.

Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.