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FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported first-quarter 2013 net earnings of $571 million, or $1.62 per share on a diluted basis, compared to 2012 first-quarter net earnings of $564 million, or $1.57 per diluted share. First-quarter 2013 revenues were $7.4 billion.
Company-wide operating margins for the first quarter of 2013 were 11.4 percent, compared to 11.3 percent in first-quarter 2012.
Net cash provided by operating activities in the quarter totaled $504 million. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $429 million in first-quarter 2013. In comparison, for the first quarter of 2012, net cash provided by operating activities was $414 million, and free cash flow from operations was $324 million.
The company repurchased 1 million outstanding shares on the open market in the first quarter, at an average price per share of $70. In addition, in March, the board of directors increased the company’s quarterly dividend by 10 percent to $0.56 per share. This represents the 16th consecutive annual dividend increase by the company.
Funded backlog at the end of first-quarter 2013 was $42.4 billion, and total backlog was $48.5 billion. Significant awards received in the quarter include a $55 million order for production of Hydra-70 rockets, a $160 million contract for two additional combat and seaframe control systems for U.S. Navy Littoral Combat Ships and an award valued at more than $100 million for infrastructure support and modernization of a new government complex in northern Virginia.
In addition to total backlog, estimated potential contract value was $25.2 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 $73.6 billion at the end of the quarter.
“General Dynamics’ first-quarter performance reflects our continued focus on operations, cost improvement and cash generation, as well as our commitment to meeting our customers’ requirements,” said Phebe N. Novakovic, chairman and chief executive officer. “This is a strong start toward achieving our objectives for the year.”
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 89,900 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 first-quarter securities analyst conference call, scheduled for 9 a.m. EDT on Wednesday, April 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. EDT on April 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 76133512. The phone replay will be available from 12 p.m. April 24 through May 1, 2013.