OREANDA-NEWS. General Dynamics (NYSE: GD) today reported second-quarter 2013 net earnings of USD 640 million, or USD 1.81 per share on a diluted basis, compared to 2012 second-quarter net earnings of USD 634 million, or USD 1.77 per diluted share. Second-quarter 2013 revenues were USD 7.9 billion.

Margins
Company-wide operating margins for the second quarter of 2013 were 12.1 percent, consistent with second-quarter 2012 margins. Each of the company’s four segments delivered margin expansion over the first quarter of 2013.

Cash
Net cash provided by operating activities in second-quarter 2013 totaled USD 579 million. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was USD 486 million in the quarter.

Capital Deployment
The company repurchased 6.6 million outstanding shares in the second quarter. Year-to-date, the company has repurchased 7.6 million outstanding shares.

Backlog
Total backlog at the end of second-quarter 2013 was USD 49.4 billion, and the estimated potential contract value was an additional USD 27.7 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 USD 77.1 billion at the end of the quarter.

Aerospace received orders for every Gulfstream aircraft model in second-quarter 2013, demonstrating continued demand across its portfolio of business-jet products. Additional significant awards received in the quarter include a USD 2.8 billion contract from the U.S. Navy for construction of four DDG 51-class destroyers, with an option for a fifth ship; a contract with a commercial customer for the design and construction of four Jones Act-compliant product carrier ships; USD 560 million from the Centers for Medicare & Medicaid Services for customer contact-center services; and USD 180 million to extend the company’s technology development effort on the U.S. Army’s Ground Combat Vehicle program.

“General Dynamics’ performance in the second quarter shows the results of our focus on operational excellence and discipline in our execution,” said Phebe N. Novakovic, chairman and chief executive officer. “We are committed to being the highest-value producer in each of the markets we serve, and to creating additional value through continuous improvement and shareholder-friendly capital deployment.”