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GENERAL DYNAMICS' FOURTH QUARTER, FULL-YEAR 1992 RESULTS

 FALLS CHURCH, Va., Jan. 27 /PRNewswire/ -- General Dynamics Corporation (NYSE: GD) today reported 1992 fourth quarter earnings from continuing operations of $153 million, or $4.92 per share, on sales of $915 million, including a tax credit of $95 million resulting from a study of prior-year investments and research and development expenditures, and an after-tax gain of $14 million from the sale of securities. Without these events, fourth quarter 1992 earnings from continuing operations would have been $1.41 per share. Fourth quarter 1991 earnings from continuing operations were $7 million, or 16 cents per share, on sales of $921 million.
 Due to its pending sale, Tactical Military Aircraft results are not reported in continuing operations, which reflect only the Nuclear Submarines, Armored Vehicles and Space Launch Systems businesses for both current and historical periods. In addition, the company reduced the number of shares outstanding by approximately 30 percent in July 1992 through a tender offer.
 Total net earnings were $174 million, or $5.59 per share, in the 1992 fourth quarter, vs. $166 million, or $3.87 per share, in the year-ago period.
 For the full year 1992, earnings from continuing operations were $248 million on sales of $3.5 billion. 1991 earnings from continuing operations were $206 million on sales of $3.3 billion, including a $140 million gain from a tax adjustment recognized in 1991. Total net earnings for full-year 1992 were $815 million versus $505 million for 1991.
 Funded backlog for continuing operations at year-end 1992 was $7.7 billion, while total backlog (funded and unfunded) for continuing operations was $9.2 billion. Comparable amounts at year- end 1991 were $8.7 billion and $9.8 billion, respectively.
 William A. Anders, chairman and chief executive officer, said, "Our program to concentrate on strengthening major weapons platform franchises through improved asset management and increased productivity continued to benefit customers, shareholders and employees during the fourth quarter.
 "Nuclear Submarines continued to benefit from the resumption of positive earnings on 688-Class nuclear submarine production in the third quarter, and we anticipate that Electric Boat's efforts to further increase program efficiency will enhance performance in the coming year.
 "In Armored Vehicles, the steady shift of our production mix toward the state-of-the-art M1A2 main battle tank, growing prospects for both domestic and international M1A2 sales, and continued success in controlling costs and increasing efficiency for the customer all contributed to improved and sustainable performance in the quarter.
 "In Space Launch Systems, the investigation of an August 1992 launch failure has been completed, and the report of the independent oversight board is in the final stages of preparation. The independent oversight board is confident that Space Launch Systems has identified and is correcting the cause of that failure. With the closing of the investigation, Space Launch Systems is commencing preparations to resume its launch program in March. With this problem identified and corrected, we expect the business to regain the momentum it had established in the first half of 1992.
 "We continued to deliver on our ongoing commitment of building financial strength and flexibility, retiring $430 million of debt during the year. We closed the year with approximately $950 million in cash and marketable securities. We anticipate that the closing of the Tactical Military Aircraft transaction during February will bring over $1 billion in additional cash to the company, net of taxes and transaction costs."
 GENERAL DYNAMICS
 Consolidated Statement of Earnings (Unaudited)
 Dollars in Millions, Except Per Share Amounts
 Fourth Quarter Twelve Months
 1992 1991 1992 1991
 NET SALES $ 915 $ 921 $ 3,472 $ 3,322
 Operating Costs
 and Expenses 863 895 3,297 3,207
 Operating Earnings 52 26 175 115
 Interest, Net 7 7 25 4
 Other, Net 28 (23) 27 (27)
 Earnings from
 Continuing Operations
 Before Income Taxes 87 10 227 92
 Provision (Credit)
 for Income Taxes (66) 3 (21) (114)
 Earnings from
 Continuing
 Operations 153 7 248 206
 NON-CORE BUSINESSES:
 Earnings from
 Operations 12 159 193 299
 Gain on Disposal 9 - 374 -
 Net Earnings $ 174 $ 166 $ 815 $ 505
 Fully Diluted Earnings
 Per Share:
 Continuing
 Operations $ 4.92 $ 0.16 $ 6.56 $ 4.81
 Non-Core Businesses:
 From Operations 0.38 3.71 5.11 6.99
 Gain on Disposal 0.29 - 9.89 -
 Net Earnings $ 5.59 $ 3.87 $ 21.56 $ 11.80
 GENERAL DYNAMICS
 Net Sales and Operating Earnings by Segment (Unaudited)
 Dollars in Millions
 Fourth Quarter Twelve Months
 1992 1991 1992 1991
 NET SALES:
 Nuclear Submarines $ 447 $ 494 $ 1,730 $ 1,824
 Armored Vehicles 397 274 1,252 1,124
 Space Launch Systems 71 153 490 374
 Total $ 915 $ 921 $ 3,472 $ 3,322
 OPERATING EARNINGS
 (LOSS):
 Nuclear Submarines $ 25 $ 21 $ 94 $ 84
 Armored Vehicles 40 26 122 101
 Space Launch Systems (13) (21) (41) (70)
 Total $ 52 $ 26 $ 175 $ 115
 -0- 1/27/93
 /CONTACT: Alvin A. Spivak of General Dynamics Corporation, 703-876-3190/
 (GD) CO: General Dynamics Corporation ST: Virginia IN: ARO SU: ERN


MH -- DC002 -- 9444 01/27/93 08:33 EST
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Date:Jan 27, 1993
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