Defense contractor General Dynamics Corp. (GD) reported Wednesday a slight increase in fourth-quarter profit, reflecting higher operating margins, helped by continuing customer demand as well as improved performance at each of the company's defense businesses. On a per share basis, earnings were in line with last year.
The Falls Church, Virginia-based company's net earnings for the fourth quarter marginally increased to $614 million from $612 million in the previous year. On a per share basis, earnings were $1.57, flat with the prior year. Earnings from continuing operations were $618 million or $1.58 per share, compared to earnings of $630 million or $1.62 per share in the year-ago quarter. For the quarter the company posted a loss from discontinued operations of $4 million or $0.01 per share.
On average, 19 analysts polled by Thomson Reuters expected the company to earn $1.57 per share for the quarter. Analysts' estimates typically exclude special items.
In its third quarter, the company had reported a 10% decline in profit, hurt by weak results at its aerospace segment. Net income for the third quarter declined to $572 million, or $1.47 per share, from $634 million, or $1.59 per share, a year ago.
Revenues for the fourth quarter marginally increased to $7.9 billion from $7.85 billion in the same quarter last year. Thirteen analysts had a consensus revenue estimate of $8.40 billion for the quarter. For the third quarter, the company's revenues advanced 8.1% to $7.72 billion from $7.14 billion in the previous-year quarter.
Segment-wise, fourth-quarter revenues from Aerospace declined 22.9% to $1.18 billion from $1.53 billion in the year earlier. Combat Systems revenues were $2.49 billion, up from $2.33 billion a year ago. Marine Systems segment generated revenues of $1.55 billion, higher than $1.38 billion reported in the same quarter last year. Revenues from Information Systems and Technology increased to $2.68 billion from $2.61 billion in the preceding year.
Operating earnings grew to $951 million from $938 million in the comparable quarter a year ago.
Operating margins for the quarter increased to 12% from 11.9% last year, helped by improved performance at each of the company's defense businesses. According to the company, operating margins improved by 160 basis points in Combat Systems, increased by 50 basis points in Marine Systems and Information Systems and Technology also improved margin performance by 80 basis points. Operating costs and expenses for the quarter were $6.95 billion, compared to $6.91 billion in the year earlier. Net cash provided by operating activities for the quarter were $1.5 billion. The company noted that free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $1.36 billion. Total backlog at the end of the quarter was $65.54 billion that reflected increases in Aerospace and Combat Systems over the end of the third quarter.
For the full year 2009, the company's net earnings declined to $2.39 billion from $2.46 billion in the previous year. Annual earnings on a per share basis remained flat with last year at $6.17. Earnings from continuing operations decreased to $2.41 billion or $6.20 per share from $2.48 billion or $6.22 per share in the preceding year. Revenues for the year grew 9.2% to $31.98 billion from $29.30 billion in the prior year. Analysts estimated earnings of $6.19 per share on revenues of $32.48 billion for the full year. Jay Johnson, president and chief executive officer said, "The strength of our diverse portfolio was evident as continuing customer demand for our defense-related products balanced the impact of the global economic challenges on business aviation. By marrying that strength with our commitment to financial performance and effective execution, the business generated strong margins and excellent cash flow in the fourth quarter and for the full year." General Dynamics employs nearly 91,700 people worldwide. Looking ahead to fiscal 2010, the company expects earnings to be in a range of $6.40 - $6.50 per share. Analysts currently anticipate the company to earn $6.53 per share for the full year. Among other players in the industry, Boeing Co. (BA) reported today fourth-quarter net earnings of $1.27 billion or $1.75 per share, compared to net loss of $86 million or $0.12 per share last year. Earnings from continuing operations were $1.28 billion or $1.77 per share, compared to loss from continuing operations of $86 million or $0.12 per share last year. Total revenues grew to $17.94 billion from $12.66 billion in the same quarter a year earlier.
Lockheed Martin Corp. (LMT) is scheduled to release its fourth-quarter results on January 28. Analysts expect the company to earn $1.99 per share on revenues of $12.47 billion for the quarter.
Northrop Grumman Corp. (NOC) is slated to announce its results for the fourth quarter on February 4. Street analysts anticipate earnings of $1.26 per share on revenues of $9 billion.
GD closed Tuesday's regular trading at $68.72 on the NYSE. In the past 52 weeks, the shares have been trading in a range of $35.28-$71.49.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.