OREANDA-NEWS. General Dynamics (NYSE: GD) today reported third-quarter 2014 net earnings from continuing operations of USD 694 million, or USD 2.05 per share on a diluted basis, on revenues of USD 7.75 billion. This compares to 2013 third-quarter net earnings from continuing operations of USD 652 million, or USD 1.84 per diluted share, on revenues of USD 7.74 billion. Third-quarter 2014 operating earnings rose USD 38 million to USD 999 million, a 4 percent increase over the year-ago quarter.

Margins

Company-wide operating margins for the third quarter of 2014 were 12.9 percent, 50 basis points higher than third-quarter 2013 margins.

Cash

Net cash provided by operating activities in third-quarter 2014 was USD 2.5 billion. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was USD 2.3 billion in the quarter.

Backlog

Total backlog at the end of third-quarter 2014 was USD 74.4 billion, up 56 percent from the third quarter of 2013. The estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was USD 26.7 billion. Total potential contract value, the sum of all backlog components, was USD 101.1 billion at the end of the quarter.

The Aerospace group experienced continued demand in the quarter with order activity across its product portfolio. Significant awards received in the quarter from the company's defense groups include a USD 5.9 billion contract to deliver SCOUT Specialist Vehicles to the British Army, USD 175 million from the U.S. Navy to provide planning and support services for nuclear submarines, USD 165 million for the U.S. Army's Common Hardware Systems-4 program, and USD 140 million for maintenance and overhaul services for the Navy's USS Pearl Harbor.

"General Dynamics had a very strong quarter, evident in our operating earnings, operating margins at 12.9 percent and solid cash performance," said Phebe N. Novakovic, chairman and chief executive officer. "With a continued focus on operating performance and the company's significant increase in backlog throughout 2014, we are well-positioned for the opportunities ahead."

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 93,500 people worldwide. The company is a market leader in business aviation;combat vehicles, weapons systems and munitions;shipbuilding;and communication and information technology systems.