General Dynamics Corp (NYSE:GD) posted higher earnings of 0.8% during 2Q16 due to increased operating margins. Net income was $758MM or $2.44 per diluted share vs. $752MM or $2.27 per diluted share in 2Q15. Revenue fell 2.8% vs. 2Q15, hurt by lower revenues seen in the company's Aerospace and Combat Systems segments.
During 2Q16, $GD repurchased 1.1MM of its outstanding shares and total backlog at the end of the quarter was $63.2Bil. For the full-year 2016, $GD raised its EPS guidance for continuing operations from $9.20 to $9.70
During call, $GD said revenues were $7.67Bil in 2Q16. Revenues were down less than 1% sequentially. EPS from continuing operations was up $28MM sequentially on a 40BP improvement in operating margins and a lower effective tax rate. For 2016, $GD expects Aerospace segment revenue to be $8.5-8.6Bil with margins slightly above 20%. For Combat Systems, revenue is expected to be slightly over $5.7Bil and margins to be 16-16.1%. Marine Systems revenue is expected to be $8.1-8.2Bil and margins around 9.2%. In IS&T, operating margins will be better than 10.5%.
David Strauss of UBS asks for an update on the large cabin market. $GDsaid it has 14 aircraft on the market currently with one pending transaction, and 186 in service. The company saw some impact with customers opting for near-term availability than weight. The G650 market has been active. In terms of orders, about 50% were from North America.
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Submitted July 27, 2016 at 05:28PM by Robert-Phillips http://ift.tt/2axWJXh
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