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UPDATE 1-General Dynamics' second-quarter profit tops estimates

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July 26 (Reuters) - General Dynamics Corp, maker of Gulfstream jets, tanks and U.S. Navy ships, posted a higher-than-expected quarterly profit on Wednesday, driven by increased sales in its combat systems business.

The company also raised its full-year earnings per share forecast to between $9.70 and $9.75 from $9.50 and $9.55.

Sales in its combat systems unit, which makes battle tanks and combat vehicles, rose 9 percent in the second quarter ended July 2.

General Dynamics' margins rose to 13.8 percent in the quarter from 13.2 percent a year earlier.

The Falls Church, Virginia-based company's net income from continuing operations rose to $749 million, or $2.45 per share, from $714 million, or $2.30 per share.

Analysts polled by Thomson Reuters I/B/E/S had expected a profit of $2.43 per share.

Revenue, however, fell 1.3 percent to $7.68 billion as sales decreased in both its aerospace unit and information systems and technology division.

The company's aerospace business, its third biggest, delivered 30 aircraft in the second quarter, compared with 36 a year earlier. (Reporting by Rachit Vats and Sweta Singh in Bengaluru; Editing by Martina D'Couto)