General Dynamics Posts 33% Jump in Net for Year
General Dynamics Corp., the nation’s largest defense contractor, on Thursday reported a sharp 33% increase in profits during 1984, based on higher volumes and improved profit margins in the firm’s aerospace and shipbuilding businesses.
The St. Louis-based firm earned $381.7 million on sales of $7.8 billion in 1984, up from profits of $286.6 million on sales of $7.1 billion the year before.
The firm’s profits were up even more sharply on a per-share basis--a 56% increase--due to the corporation’s repurchase of about 6.5 million shares during 1984. General Dynamics earned $2.37 per share in 1984.
The jump in operating profits was led by the firm’s shipbuilding operations on the East Coast and its California-based missile businesses. The shipyards posted operating earnings of $194.7 million, a 120% increase. The missile and gun unit’s profits rose 39% to $119.2 million.
“It is also significant,” General Dynamics Chairman David Lewis said, “that the company’s land systems division, which delivers main battle tanks to the Army, and the resources and information systems subsidiaries all made major contributions to this year’s earnings.”
