Printer Friendly

GENERAL DYNAMICS ANNOUNCES FOURTH QUARTER, FULL YEAR 1991 RESULTS; $350 MILLION DEBT REDUCTION IN 1992 FIRST QUARTER

 GENERAL DYNAMICS ANNOUNCES FOURTH QUARTER, FULL YEAR 1991 RESULTS;
 $350 MILLION DEBT REDUCTION IN 1992 FIRST QUARTER
 FALLS CHURCH, Va., Jan. 31 /PRNewswire/ -- General Dynamics Corporation (NYSE: GD) today reported 1991 fourth quarter earnings from continuing operations of $66 million, or $1.56 per share, on sales of $2.3 billion. For the year 1991, the company had earnings from continuing operations of $374 million, or $8.93 per share, on sales of $8.8 billion, including a gain of $140 million, or $3.35 per share, from a tax provision adjustment recognized in the second quarter. Without that gain, 1991 earnings from continuing operations were $234 million, or $5.58 per share.
 Total net earnings, the combination of earnings from continuing operations and earnings from discontinued operations, were $166 million, or $3.95 per share, in the 1991 fourth quarter, and $505 million, or $12.06 per share, for the year. Due to the planned sale of Cessna Aircraft Company to Textron Inc. for $600 million in cash, Cessna's results are reported as discontinued operations. In the fourth quarter, Cessna recognized a pre-tax gain of approximately $100 million from the reduction of its product liability accrual as a result of favorable claim experience and favorable product liability legislation in a number of states.
 In the fourth quarter 1990, General Dynamics reported a net loss of $530 million, or $12.71 per share, including special charges against earnings totaling $567 million after tax. For the year 1990, the company had a loss of $578 million, or $13.86 per share, including special charges of $881 million after tax. The special charges related to write-offs on various programs and restructuring actions. Without the special charges, net earnings for the fourth quarter 1990 were $37 million, or $0.89 per share. For the year 1990, without special charges, net earnings were $303 million, or $7.27 per share.
 William A. Anders, Chairman and Chief Executive Officer, said, "General Dynamics' more business-like approach and strategy of increasing shareholder value produced outstanding results in 1991. Our increased financial strength and improved operating efficiencies give us the foundation we need to continue our efforts to shape a company better able to serve our customers, our employees and our shareholders in a rapidly changing marketplace."
 "Our first business priority has been to increase our liquidity and financial strength," Anders said. "Cash generation in 1991 has been better than anticipated, and we have ended the year with a cash balance of more than $800 million after paying the last of our deferred tax obligations," Anders said. In addition, the company announced today it has directed its Trustee to call two of its debt issues: 7-7/8 percent Notes due 1993 and 9 percent debentures due 2016. This will reduce long term debt by approximately $350 million in the first quarter of 1992. Action to reduce indebtedness by an additional $100 million is also expected to be taken later in the year.
 "Our second priority has been to assure adequate funding for investments in our core defense businesses," Anders said. "The proceeds from Cessna are expected to be received by the end of the first quarter of 1992. By that time, we expect to have determined a level of core defense investment appropriate to the ongoing rationalization of our nation's Defense Industrial Base. Accordingly, we should then be able to design and implement the third stage of our cash strategy -- the return to shareholders of cash in excess of our liquidity and investment needs."
 The backlog of funded orders at the end of 1991 increased to $18.0 billion and total backlog (funded and unfunded) increased to $25.6 billion, the latter amount representing an increase of $3.4 billion, or
15 percent, in the year. Comparable backlog amounts at the end of the third quarter of 1991 were $17.8 billion and $25.8 billion, respectively.
 "Our current backlog includes an increased level of new and profitable contracts from our military customers. Total backlog now represents nearly 3 years of sales. This backlog level helps ensure a more stable level of employment for our workers, and was instrumental in our decision to more tightly focus this company's future on its core defense competencies," Anders said. "The appropriateness of the strategic changes we have made over the past year was underscored by the defense budget submitted to Congress this week. If approved by Congress, proposed program cuts would reduce our year-end 1991 backlog by less than $1 billion, or under 4 percent. Longer term, however, the government's stated procurement policies make it clear that future defense research and procurement contracts will only be available to those suppliers who are financially strong, who are leaders in their areas of expertise, and who have sufficient 'critical mass' in design and manufacturing to provide effective, high-quality products on time and on budget."
 GENERAL DYNAMICS
 Consolidated Statement of Earnings (Unaudited)
 (Dollars in millions, except per share amounts)
 FOURTH QUARTER TWELVE MONTHS
 1991 1990 1991 1990
 Net sales $ 2,333 $ 2,399 $ 8,751 $ 9,457
 Operating costs
 and expenses 2,213 3,187 8,359 10,374
 Operating earnings
 (loss) 120 (788) 392 (917)
 Interest, net (2) (15) (34) (62)
 Other income
 (expense), net (23) (30) (27) (61)
 Earnings (loss)
 from continuing
 operations before
 income taxes 95 (833) 331 (1,040)
 Provision (credit)
 for income taxes 29 (293) (43) (366)
 Earnings (loss)
 from continuing
 operations, net 66 (540) 374 (674)
 Earnings from
 discontinued
 operations, net:
 Cessna aircraft 100 10 131 35
 Telecommunications
 businesses - - - 61
 100 10 131 96
 Net earnings
 (loss) $ 166 $ (530) $ 505 $ (578)
 GENERAL DYNAMICS
 Consolidated Statement of Earnings (unaudited)
 (Dollars in millions, except per share amounts)
 Fourth Quarter Twelve Months
 1991 1990 1991 1990
 Earnings (loss)
 per share from
 continuing
 operations $ 1.56 $ (12.96) $ 8.93 $ (16.17)
 Earnings per
 share from
 discontinued
 operations:
 Cessna aircraft 2.39 .25 3.13 .83
 Telecommunications
 businesses - - - 1.48
 2.39 .25 3.13 2.31
 Net earnings
 (loss) per share $ 3.95 $(12.71) $12.06 $(13.86)
 GENERAL DYNAMICS
 Net Sales and Operating Earnings by Segment
 (Unaudited--dollars in millions)
 Fourth Quarter Twelve Months
 1991 1990 1991 1990
 Net sales:
 Military aircraft $ 702 $ 864 $ 2,719 $ 3,661
 Submarines 487 451 1,803 1,731
 Missile systems 345 390 1,385 1,595
 Land systems 270 273 1,112 1,072
 Space systems 148 54 363 297
 Other 381 367 1,369 1,101
 Total $ 2,333 $ 2,399 $ 8,751 $ 9,457
 Operating earnings (loss):
 Military aircraft $ 45 $ (354) $ 164 $ (639)
 Submarines 24 7 89 85
 Missile systems 36 (83) 76 (11)
 Land systems 27 20 106 70
 Space systems (20) (328) (68) (395)
 Other 8 (50) 25 (27)
 Total $ 120 $ (788) $ 392 $ (917)
 -0- 1/31/92 R
 /CONTACT: Alvin Spivak of General Dynamics, 703-876-3190/
 (GD) CO: General Dynamics Corporation ST: Virginia IN: ARO SU: ERN


GK -- NY002R -- 5482 01/31/92 09:00 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 31, 1992
Words:1157
Previous Article:DANAHER REPORTS FOURTH QUARTER AND 1991 EARNINGS
Next Article:WOLVERINE WORLD WIDE ANNOUNCES JURY VERDICT IN TEXAS CATTLE HIDE TRIAL
Topics:


Related Articles
TRINOVA REPORTS RESULTS FOR 1991
SERVICE MERCHANDISE ANNOUNCES SALES AND EARNINGS
GENERAL DYNAMICS ANNOUNCES TERMS OF PREVIOUSLY REPORTED CALL OF TWO DEBT ISSUES
GENERAL DYNAMICS ANNOUNCES FIRST QUARTER 1992 RESULTS; EARNINGS FROM CONTINUING OPERATIONS INCREASED 44 PERCENT; CESSNA GAIN $8.49 PER SHARE
GENERAL DYNAMICS ANNOUNCES FIRST QUARTER 1992 RESULTS; EARNINGS FROM CONTINUING OPERATIONS INCREASED 44 PERCENT; CESSNA GAIN $8.49 PER SHARE
SIGNET BANKING CORPORATION REPORTS FIRST QUARTER EARNINGS
GENERAL DYNAMICS ANNOUNCES SECOND QUARTER 1992 RESULTS
GENERAL DYNAMICS' FOURTH QUARTER, FULL-YEAR 1992 RESULTS
GENERAL DYNAMICS ANNOUNCES FIRST QUARTER 1993 RESULTS: EARNINGS FROM CONTINUING OPERATIONS INCREASE 37 PERCENT
GENERAL DYNAMICS' FOURTH QUARTER, FULL-YEAR 1993 RESULTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters