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NEWS |
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General
Dynamics Reports 16.3 Percent Growth of Earnings from
Continuing Operations in Fourth Quarter 2006;Revenues Increase 13 Percent
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported financial
results for the fourth quarter and full year of 2006, which ended December 31.
(All per-share data reported below has been adjusted to reflect a two-for-one
stock split that occurred March 24, 2006.)
Fourth-Quarter Results
General Dynamics’ earnings from continuing operations in the fourth quarter of
2006 were $463 million, or $1.13 per share on a fully diluted basis, an increase
of 16.3 percent compared to 2005 fourth-quarter earnings from continuing
operations of $398 million, or $0.98 per share fully diluted. Revenue for the
fourth quarter of 2006 was $6.5 billion, compared to fourth-quarter 2005 revenue
of $5.8 billion.
Full-year 2006 Results
Earnings from continuing operations for 2006 grew by 18.1 percent to $1.71
billion, or $4.20 per share on a fully diluted basis, compared with earnings of
$1.45 billion, or $3.58 fully diluted, in 2005. Revenue for the full year of
2006 was $24.1 billion, compared with $21 billion for 2005, an increase of 14.7
percent.
Cash
Net cash provided by operating activities from continuing operations totaled
$824 million in the quarter and $2.16 billion for the year. Free cash flow from
operations, defined as net cash provided by operating activities from continuing
operations less capital expenditures, was $687 million in the quarter and $1.82
billion for the year.
Backlog
The company’s funded backlog grew by approximately $1 billion in the fourth
quarter of 2006, to $32.7 billion; it increased $4.5 billion compared to
year-end 2005. Total backlog at year-end 2006 was $43.7 billion.
Margins
Company-wide operating margins for the full year increased by 50 basis points
over 2005, to 10.9 percent. Operating margins for the fourth quarter increased
to 10.8 percent from 10.6 percent for fourth-quarter 2005.
Net Earnings
General Dynamics’ net earnings for the fourth quarter of 2006 were $408 million,
including charges in discontinued operations related to the anticipated sale of
the company’s coal mining operations, compared to fourth-quarter 2005 net
earnings of $406 million. Net earnings for the full year, including a gain in
discontinued operations from the sale of the company’s aggregates business, were
$1.86 billion in 2006, compared to $1.46 billion in 2005.
“General Dynamics generated solid returns in the fourth quarter of 2006, capping another very strong year,”
said General Dynamics Chairman and Chief Executive Officer Nicholas D. Chabraja.
“Revenue and earnings grew substantially over the fourth quarter of 2005, and
full-year earnings per share from continuing operations grew by 17.3 percent
over last year, on a revenue increase of 14.7 percent. Free cash flow from
operations in the year of over $1.8 billion once again represents a very
efficient conversion of net earnings into cash, a ratio of 107 percent.”
General Dynamics, headquartered in Falls Church, Virginia, employs approximately
81,000 people worldwide. The company is a market leader in mission-critical
information systems and technologies; land and expeditionary combat systems,
armaments and munitions; shipbuilding and marine systems; and business aviation.
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, our Annual
Report on Form 10-K and our Forms 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:
Exhibit A
(more)
Exhibit B
(more)
Exhibit C
(more)
Exhibit D
(more)
Exhibit E
(more)
Exhibit F
(more)
Exhibit G
(more)
FOURTH QUARTER 2006 SIGNIFICANT ORDERS (UNAUDITED)
DOLLARS IN MILLIONS
General Dynamics received the following significant contract orders during
the fourth quarter of 2006:
Information Systems and Technology
Combat Systems
Marine Systems
Exhibit H
(more)
Exhibit I
(more)
Exhibit J
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