General Dynamics Profit Falls, but Beats Wall Street Forecasts

General Dynamics posted lower second-quarter profit Wednesday, but beat Wall Street expectations on strong demand for its business jets and military vehicles.

The U.S. No. 4 defense contractor, which makes Abrams tanks and Gulfstream aircraft, reported quarterly net profit of $513 million, or $1.26 per share, compared with $636 million, or $1.56 per share, in the year-ago quarter when its earnings were boosted by a gain from the sale of its aggregates business.

On a continuing operations basis, General Dynamics said earnings rose to $518 million, or $1.27 per share, from $420 million, or $1.03 per share.

Excluding a gain related to the resolution of tax audits, the company posted earnings of $1.22 per share, beating Wall Street expectations of $1.17 per share, according to Reuters Estimates.

Revenue rose 11% to $6.6 billion boosted by a 19% jump in sales from its armored vehicle group.

The company's total order backlog at the end of June rose to $44.6 billion from $43.6 billion.

General Dynamics , which also makes submarines and other ships for the U.S. Navy, forecast 2007 earnings from continuing operations in a range of $4.85 to $4.90, ahead of Wall Street's expectations.

Analysts, on average, had been expecting the company to post 2007 earnings of $4.79 per share, according to Reuters Estimates.

Contact U.S. News


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Don't Miss

U.S. Video