gd_reports_q213_results-07-24-13.pdf
Diluted EPS increases 2.3 percent over second-quarter 2012
Operating margins remain above 12 percent
Strong Aerospace activity drives revenues and earnings
Margins
Company-wide operating margins for the second quarter of 2013 were 12.1 percent, consistent with second-quarter 2012 margins. Each of the company’s four segments delivered margin expansion over the first quarter of 2013.
Cash
Net cash provided by operating activities in second-quarter 2013 totaled $579 million. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $486 million in the quarter.
Capital Deployment
The company repurchased 6.6 million outstanding shares in the second quarter. Year-to-date, the company has repurchased 7.6 million outstanding shares.
Backlog
Total backlog at the end of second-quarter 2013 was $49.4 billion, and the estimated potential contract value was an additional $27.7 billion, representing management’s estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options. Total potential contract value, the sum of all backlog components, was $77.1 billion at the end of the quarter.
Aerospace received orders for every Gulfstream aircraft model in second-quarter 2013, demonstrating continued demand across its portfolio of business-jet products. Additional significant awards received in the quarter include a $2.8 billion contract from the U.S. Navy for construction of four DDG 51-class destroyers, with an option for a fifth ship; a contract with a commercial customer for the design and construction of four Jones Act-compliant product carrier ships; $560 million from the Centers for Medicare & Medicaid Services for customer contact-center services; and $180 million to extend the company’s technology development effort on the U.S. Army’s Ground Combat Vehicle program.
“General Dynamics’ performance in the second quarter shows the results of our focus on operational excellence and discipline in our execution,” said Phebe N. Novakovic, chairman and chief executive officer. “We are committed to being the highest-value producer in each of the markets we serve, and to creating additional value through continuous improvement and shareholder-friendly capital deployment.”
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 90,100 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at www.generaldynamics.com.
Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
All forward-looking statements speak only as of the date they were made. The company does not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
WEBCAST INFORMATION:
General Dynamics will webcast its second-quarter securities analyst conference call at 9 a.m. EDT on Wednesday, July 24, 2013. The webcast will be a listen-only audio event, available at www.generaldynamics.com. An on-demand replay of the webcast will be available by 12 p.m. on July 24 and will continue for 12 months. To hear a recording of the conference call by telephone, please call 888-286-8010 (international: 617-801-6888); passcode 18852921. The phone replay will be available from 12 p.m. July 24 through July 31, 2013.
