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GENERAL DYNAMICS ANNOUNCES SECOND QUARTER 1992 RESULTS

 GENERAL DYNAMICS ANNOUNCES SECOND QUARTER 1992 RESULTS
 FALLS CHURCH, Va., July 15 /PRNewswire/ -- General Dynamics Corporation (NYSE: GD) today reported 1992 second quarter earnings from continuing operations of $65 million, an increase of 97 percent from 1991 second quarter earnings from continuing operations of $33 million, excluding a $140 million gain from a tax adjustment. Including the tax adjustment, 1991 second quarter earnings from continuing operations were $173 million. Fully diluted earnings per share from continuing operations were $1.48 in the 1992 second quarter, compared with 1991 results of 77 cents without the tax gain, and $4.06 with the 1991 tax gain. Sales in both the 1992 and 1991 second quarters were $1.6 billion.
 As previously reported, in order to focus on strengthening its core businesses, the company expects to sell its non-core businesses in an orderly and prudent manner. Earnings from non-core operations in the second quarter of 1992 were $21 million. Non-core earnings in the second quarter of 1991 were $38 million, including $17 million from The Cessna Aircraft Company, which was sold in the first quarter of 1992. Total net earnings, the combination of earnings from both continuing and non-core operations, were $86 million in the 1992 second quarter, versus $211 million in the year-ago period. Fully diluted net earnings per share were $1.96 in the second quarter of 1992, and $4.95 in the year-ago period.
 For the first half of 1992, earnings from continuing operations were $122 million on sales of $3.2 billion. In the same period of 1991, earnings from continuing operations, including the $140 million tax gain, were $217 million on sales of $3.1 billion. Non-core earnings of $399 million for the first half included a gain of $358 million (after tax) from the sale of Cessna in February 1992, compared with non-core earnings of $51 million for the first half of 1991. Total net earnings for the first half of 1992 were $521 million versus $268 million for the same period in 1991.
 Funded backlog for continuing operations at the end of the 1992 second quarter was $13.6 billion, while total backlog (funded and unfunded) for continuing operations was $20.1 billion. Comparable amounts at the same time last year were $12.7 billion and $15.0 billion, respectively.
 William A. Anders, chairman and chief executive officer, said, "Our second quarter results demonstrate the continued success of our program to focus on our core competencies while improving efficiency and building financial strength throughout the company. Tactical military aircraft, nuclear submarines and armored vehicles businesses continued their solid performance of the first quarter, while space launch operations generated improved results with further launch success and new business booked during the second quarter.
 "In recent months, we have been encouraged by the growing appreciation in government of the need to protect critical elements of the defense industrial base through selected low-rate production. This recognition has been reflected in initiatives taken by both Congress and the armed services regarding the F-16 multi-role fighter, the Seawolf submarine and the M1A2 main battle tank," Anders continued. "Throughout our core businesses, we are redoubling our efforts to provide high quality, cost effective weapons systems which can be produced profitably and efficiently at these lower rates of production.
 "Financially, we closed the second quarter with approximately $1.3 billion in cash and marketable securities," Anders said. "This more than funded our $957 million repurchase of company stock in July, and continues to provide ample funds in support of our ongoing businesses. In addition, our first quarter retirement of $350 million in debt benefited the second quarter by significantly lowering interest expenses, which will be further reduced by additional debt retirement later this year."
 Anders concluded, "We will continue our efforts to ensure that, as this nation's defense industrial base undergoes rationalization, each of our businesses will emerge structured to better perform for our customers, our shareholders and our employees."
 GENERAL DYNAMICS
 Consolidated Statement of Earnings (Unaudited)
 Dollars in Millions, Except Per Share Amounts
 Second Quarter Six Months
 1992 1991 1992 1991
 Net Sales $ 1,609 $ 1,567 $ 3,181 $ 3,096
 Operating Costs
 and Expenses 1,518 1,502 3,004 2,950
 Operating Earnings 91 65 177 146
 Interest, Net 7 (12) 5 (24)
 Other Expense, Net (1) (6) (1) (11)
 Earnings from
 Continuing Operations
 Before Income Taxes 97 47 181 111
 Provision (Credit)
 for Income Taxes 32 (126) 59 (106)
 Earnings from
 Continuing Operations 65 173 122 217
 Non-Core Businesses:
 Earnings from
 Operations 21 38 41 51
 Gain on Disposal -- -- 358 --
 Net Earnings $ 86 $ 211 $ 521 $ 268
 Fully Diluted Earnings
 Per Share:
 Continuing
 Operations $ 1.48 $ 4.06 $ 2.79 $ 5.10
 Non-Core Businesses:
 From Operations 0.48 0.89 0.94 1.20
 Gain on Disposal -- -- 8.20 --
 Net Earnings $ 1.96 $ 4.95 $11.93 $ 6.30
 GENERAL DYNAMICS
 Net Sales and Operating Earnings by Segment (Unaudited)
 Dollars in Millions
 Second Quarter Six Months
 1992 1991 1992 1991
 Net Sales:
 Tactical Military
 Aircraft $ 757 $ 711 $ 1,481 $ 1,474
 Nuclear Submarines 436 459 864 877
 Armored Vehicles 294 303 580 587
 Space Launch Systems 122 94 256 158
 Total $ 1,609 $ 1,567 $ 3,181 $ 3,096
 Operating Earnings
 (Loss):
 Tactical Military
 Aircraft $ 49 $ 45 $ 97 $ 84
 Nuclear Submarines 21 20 43 39
 Armored Vehicles 28 25 54 49
 Space Launch Systems (7) (25) (17) (26)
 Total $ 91 $ 65 $ 177 $ 146
 -0- 7/15/92
 /CONTACT: Alvin A. Spivak of General Dynamics, 703-876-3190/
 (GD) CO: General Dynamics Corporation ST: Virginia IN: ARO SU: ERN


MH -- DC002 -- 9467 07/15/92 10:41 EDT
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