General Dynamics cuts costs, 1Q profit up slightly to $597 million

General Dynamics sees margins, 1Q profit increase

FALLS CHURCH, Va. — General Dynamics Corp. said Wednesday its first-quarter earnings increased slightly on improving margins, especially in the aerospace and combat system sectors.

The aviation and military equipment company reported net income of $597 million, or $1.53 a share, in the first three months of the year. That compares with earnings of $590 million, or $1.53 a share in the same period last year, when there were fewer outstanding shares.

Revenue dipped 6.2 percent to $7.75 billion.

The company says, however, that its backlog grew 3 percent to $47.4 billion during the quarter, including contracts worth $845 million for two combat-logistics ships.

Analysts expected earnings of $1.51 a share on revenue of $8.15 billion.

Company CEO Jay L. Johnson said operating margins were “steady or improving” throughout the company.

“We saw good order activity across the corporation,” Johnson said in a statement.

General Dynamics said its total backlog was $63.9 million at the end of the first quarter, and the company estimates it could make another $17 million in potential contracts.

During the quarter, the company said it received a $515 million order from the U.S. Army for vehicle production, contractor logistics support and battle-damage assessment. It also received a $390 million order from the Army for communication equipment and a $300 million order from the U.S. Marines for 250 RG-31 vehicles, suspension kits and spare parts.