FALLS CHURCH, Va. - General Dynamics reported second-quarter 2017sales of $7.7 billion, down 1.3 percent from sale of $7.8 billion in the second quarter of 2016. Net earnings were $749 million, up almost five percent from $714 million a year prior.
"General Dynamics' strong second quarter performance reflects our focus on operations and executing on our programs," said Phebe N. Novakovic, chairman and chief executive officer. "We are confident in our outlook for the future, built on a solid defense backlog and continued good order activity across the portfolio of Gulfstream business jets."
General Dynamics' total backlog at the end of second-quarter 2017 was $58.6 billion, compared to $65 billion in the second quarter of 2016. There was order activity across the Gulfstream product portfolio and strong demand for defense products, including another quarter of a book-to-bill ratio (orders divided by revenue) greater than one-to-one in the Information Systems and Technology group. The estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $24.4 billion. Total potential contract value, the sum of all backlog components, was $83 billion at the end of the quarter.
INDUSTRY SEGMENTS
Aerospace had 2017 second quarter sales of $2.08 billion down 9 percent compared to 2016 period sales of $2.28 billion. Operating income rose to $425 million compared to $424 million in 2016. For the first half of the year, Gulfstream delivered 60 aircraft compared to 64 in the first half of 2016.
Combat Systems posted 2017 second quarter sales of $1.41 billion, up 9 percent from $1.3 billion in 2016. Operating income rose to $225 million compared to $205 million in 2016.
The Information Systems and Technology segment reported sales of $2.1 billion, down 5 percent compared to $2.21 billion in 2016. Operating income rose to $240 million for the quarter compared to $234 million in the same period in 2016.
In the Marine segment sales rose 5 percent to $2.08 billion in 2017 compared to $1.99 billion in 2016. Operating income for the quarter rose to $178 million compared to $172 million in 2016.
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