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 FALLS CHURCH, Va., Oct. 20 /PRNewswire/ -- General Dynamics Corporation (NYSE: GD) today reported 1993 third quarter earnings after taxes from continuing operations of $72 million on sales of $900 million vs. comparable 1992 third quarter results of $29 million on sales of $857 million. Fully diluted earnings per share from continuing operations were $2.28 in the 1993 third quarter, compared with 1992 results of 91 cents per share. The 1993 third quarter results from continuing operations include an after-tax, non- recurring gain from the sale of securities of $24 million, or 76 cents per share. Without the non-recurring gain, third quarter earnings from continuing operations were $48 million, or $1.52 per share, a 66 percent increase from prior year results.
 Earnings after taxes from discontinued operations in the third quarter of 1993 were $1 million vs. $91 million in the third quarter of 1992. Total net earnings, the combination of earnings from both continuing and discontinued operations, were $73 million in the 1993 third quarter, versus $120 million in the year-ago period which included $57 million in earnings from discontinued operations sold during the past year. Fully diluted net earnings per share were $2.31 in the third quarter of 1993, and $3.77 in the year-ago period.
 For the first nine months of 1993, after-tax earnings from continuing operations were $170 million on sales of $2.6 billion. In the same period of 1992, comparable results were $95 million on sales of $2.6 billion. Earnings after taxes from discontinued operations for the first nine months of 1993 were $651 million, including a $645 million net gain on the sale to Lockheed Corporation of the Tactical Military Aircraft business in March 1993. After-tax earnings from discontinued operations in the first nine months of 1992 were $546 million, including a $358 million net gain on the sale to Textron of The Cessna Aircraft Company in February 1992. Total net earnings for the first nine months of 1993 were $821 million vs. $641 million for the same period in 1992.
 Funded backlog for continuing operations at the end of the 1993 third quarter was $7.2 billion, while total backlog (funded and unfunded) for continuing operations was $8 billion. Comparable amounts at the same time last year were $8.2 billion and $9.3 billion, respectively.
 James R. Mellor, president and chief executive officer, said, "Our efforts to focus on quality, affordability, productivity and financial strength continued to generate positive results in the third quarter.
 "In Nuclear Submarines, productivity gains supported stronger year- to-year earnings in both the Trident and 688 programs. Looking forward, we are encouraged by the Clinton administration's September `Bottom-Up Review' recommendation that a third Seawolf be built at Electric Boat to preserve EB's critical nuclear submarine industrial base capabilities until production of a New Attack Submarine begins later in the decade. The U.S. Navy is moving to initiate long-lead procurement for SSN23 using funds previously set aside by Congress for submarine industrial base preservation.
 "In Armored Vehicles, production for foreign markets continues to grow, bolstering year-to-year revenues and operating profits. Going forward, we expect Armored Vehicles performance to be enhanced by further productivity gains from reegineering programs being implemented at the Land Systems Division. Longer term, we expect this business to be further sustained by the U.S. Army's program to upgrade approximately 1,000 older M1 Abrams Main Battle Tanks to M1A2 status. The upgrade program is an integral part of the Clinton administration's `Bottom-Up Review' and has significant support in the Congress.
 "Space Launch Systems' program to reconfirm the Atlas' long-standing reputation for quality and reliability continued with the successful launch of a U.S. Navy UHF satellite in September. This marked the third successful Atlas launch since it returned to flight in July, and was key to the year-to-year improvement in Space Launch Systems' financial performance during the quarter. Continued launch reliability, coupled with Space Launch Systems' reengineering of its organization and cost structure, should generate positive earnings and cash flow from this business within the coming year.
 "General Dynamics' financial position remains rock solid. As previously reported, in September the board of directors increased the company's regular dividend by 50 percent to an indicated annual rate of $2.40 per share, reflecting the board's confidence in the stability of the strong cash flows generated by General Dynamics' continuing operations. In addition, at the end of the third quarter of 1993, total debt stood at just $38 million and our balance of cash and marketable securities stood at $970 million, providing more than enough liquidity to both support the company's ongoing financial needs and fund a previously reported $12 per share Special Distribution authorized by the board of directors on Sept. 15, 1993, and paid on Oct. 12, 1993. This brings the total value returned to shareholders through Special Distributions and a tender offer to approximately $2.5 billion over the past eighteen months."
 Consolidated Statement of Earnings (unaudited)
 Dollars in Millions, except per share amount
 1993 1992 1993 1992
 Net Sales $ 900 $ 857 $ 2,571 $ 2,557
 Operating Costs
 and expenses 842 814 2,400 2,434
 Operating Earnings 58 43 171 123
 Interest, Net 9 1 32 18
 Other Income, Net 43 (2) 57 (1)
 Earnings From
 Continuing Operations
 Before Income Taxes 110 42 260 140
 Provision For
 Income Taxes 38 13 90 45
 Earnings From Continuing
 Operations 72 29 170 95
 Discontinued Operations:
 Earnings From Operations 1 84 6 181
 Gain On Disposal -- 7 645 365
 Net Earnings $ 73 $ 120 $ 821 $ 641
 Fully Diluted Earnings
 Per Share:
 Continuing Operations $ 2.28 $ 0.91 $ 5.38 $ 2.39
 Discontinued Operations:
 From Operations 0.03 2.64 0.19 4.54
 Gain on Disposal -- 0.22 20.40 9.17
 Net Earnings $ 2.31 $ 3.77 $ 25.97 $ 16.10
 Weighted Average
 Shares Outstanding
 (in Millions) 31.6 31.8 31.6 39.8
 Net Sales and Operating Earnings By Segment (unaudited)
 Dollars In Millions
 1993 1992 1993 1992
 Net Sales:
 Nuclear Submarines $ 425 $ 419 $ 1,306 $ 1,283
 Armored Vehicles 296 275 942 855
 Space Launch Systems 179 163 323 419
 Total $ 900 $ 857 $ 2,571 $ 2,557
 Operating Earnings
 Nuclear Submarines $ 29 $ 26 $ 89 $ 69
 Armored Vehicles 32 28 121 82
 Space Launch Systems (3) (11) (39) (28)
 Total $ 58 $ 43 $ 171 $ 123
 -0- 10/20/93
 /CONTACT: Ray Lewis of General Dynamics, 703-876-3195/

CO: General Dynamics Corporation ST: Virginia IN: ARO SU: ERN

DT-DS -- DC011 -- 4430 10/20/93 09:27 EDT
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Publication:PR Newswire
Date:Oct 20, 1993

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