OREANDA-NEWS. General Dynamics (NYSE: GD) today reported third-quarter 2013 net earnings of USD 651 million, or USD 1.84 per share on a diluted basis, on revenues of USD 7.8 billion. This compares to 2012 third-quarter net earnings of USD 600 million, or USD 1.70 per diluted share, on revenues of USD 7.9 billion. Third-quarter 2013 operating earnings rose USD 52 million to USD 957 million, a 5.7 percent increase over the year-ago quarter.

Margins
Company-wide operating margins for the third quarter of 2013 were 12.3 percent, 90 basis points higher than third-quarter 2012 margins, reflecting operating-performance improvement in the company’s Aerospace, Combat Systems and Information Systems and Technology groups over the year-ago period. Marine Systems’ margins remained steady from second quarter to third quarter 2013 on the strength of current program performance, although they declined as expected from the year-ago period due to the completion of the long-running T-AKE program.

Cash
Net cash provided by operating activities in third-quarter 2013 totaled USD 467 million. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was USD 364 million in the quarter.

Capital Deployment
The company repurchased 1.6 million shares of outstanding common stock in the third quarter. Year-to-date, the company has repurchased 9.2 million shares. At its October meeting the company’s board of directors authorized management to repurchase up to 10 million additional shares.

Backlog
Total backlog at the end of third-quarter 2013 was USD 47.9 billion, and the estimated potential contract value was an additional USD 27.4 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 75.4 billion at the end of the quarter.

Significant awards received in the quarter include USD 200 million to continue production and support of double-V-hulled Stryker combat vehicles for the U.S. Army, USD 150 million for continued production of Abrams tanks for a foreign customer and USD 140 million for equipment and services in support of the Army’s Warfighter Information Network-Tactical (WIN-T). Marine Systems was contracted to design and manufacture two commercial product carriers, and received a USD 280 million award for repair and maintenance of U.S. Navy LHA- and LHD-class ships.

“General Dynamics performed well in the third quarter, reflecting our focus on the basics of operational excellence,” said Phebe N. Novakovic, chairman and chief executive officer. “We remain committed to creating value by meeting our obligations to our customers while continuously improving the way we do business.”