Defense contractor General Dynamics, parent of Groton submarine builder Electric Boat, said its fourth-quarter earnings rose 19 percent and demand remains strong for its vehicles, ships and business jets, The Associated Press reports.
General Dynamics, which also makes Gulfstream jets and Bradley and Stryker combat vehicles, said its aerospace business boosted its backlog with new orders, and significant U.S. and international orders came in for vehicles, ship design and other work.
Each of its four business groups — aerospace, combat systems, marine systems and information systems — posted revenue gains between 7 percent and 10 percent.
The company suffered a setback this month when Defense Secretary Robert Gates announced plans to scrap development of the expeditionary fighting vehicle that General Dynamics is developing for the Marine Corps. CEO Jay L. Johnson said the company’s defense work was diversified enough to handle ups and downs.
Barclays Capital analyst Joseph F. Campbell Jr. said growth in the backlog of orders for Gulfstream jets was positive. He predicted that demand would further strengthen this year, which could lead to increased production of profitable larger models.
The company said it earned $729 million, or $1.91 per share, up from $614 million, or $1.57 a share, a year earlier. Revenue rose 9 percent to $8.60 billion, from $7.9 billion.
Analysts expected $1.85 per share on revenue of $8.94 billion, according to FactSet.
The Falls Church company said it expects 2011 earnings of $7 to $7.10 per share. Analysts were forecasting $7.11 for the new year.
The company ended 2010 with a backlog of $59.6 billion in orders, down from $61.8 billion at the end of the third quarter.
For all of 2010, General Dynamics earned $2.62 billion, or $6.81 per share, on revenue of $32.47 billion. That compared with $2.39 billion, or $6.17 per share, on revenue of $31.98 billion in 2009.
The company slightly reduced spending for both the fourth quarter and the full year, resulting in higher profit margins. During 2010, it paid down long-term debt to $2.43 billion from $3.16 billion.
General Dynamics has about 90,000 employees.
