Defense contractor General Dynamics Corp. said Wednesday its second-quarter earnings rose 5 percent and raised its profit forecast for the year.
The aviation and military equipment company credited the improved earnings to better margins and strength in its aerospace and combat systems units.
But its revenue was flat for the April-June quarter, missing Wall Street expectations. Its shares fell 97 cents, or 1.6 percent, to $60.80 in pre-opening trading.
Its aerospace group designs and manufacturers business jets. The unit is made up of Gulfstream Aerospace Corp., Jet Aviation and General Dynamics Aviation Services. The combat systems unit makes armed combat vehicles, guns and ammunition handling systems and chemical and biohazard detection products.
The company's funded backlog at the end of the quarter was $45.9 billion, compared with $47.4 billion at the end of the first quarter.
General Dynamics said "orders received in the quarter underscored the continuing global demand for the company's products and services," including Gulfstream business jets, tanks, armored vehicles, motors and warheads, engineering and support services for shipbuilding programs and communications products and services.
The Falls Church, Va., company reported net income of $648 million, or $1.67 per share, compared with $618 million, or $1.60 per share, a year earlier.
Revenue was steady at $8.1 billion.
Analysts surveyed by Thomson Reuters projected a lower profit of $1.61 per share, on average, on higher revenue of $8.33 billion.
General Dynamics now expects earnings for the full year between $6.60 and $6.65 per share, compared with a previous estimate of $6.40 to $6.50 per share. Analysts polled by Thomson Reuters expect $6.59 per share.
