Yahoo Finance Defense company General Dynamics posts 4Q profit
General Dynamics returned to a profit in 4Q, but 2014 outlook misses Street views
FALLS CHURCH, Va. (AP) -- General Dynamics Corp. said Wednesday that it returned to a profit in the fourth quarter, as the defense contractor's expenses fell sharply from a year earlier and its revenue edged higher.
For the October-December period, the company reported net income of $495 million, or $1.40 per share. That compares with a loss of $2.13 billion, or $6.07 per share, in the prior-year quarter, when the company's operating costs swelled to nearly $10 billion.
Excluding the impact of a $129 million loss related to a pending legal settlement, the company's earnings amounted to $1.76 per share in the latest quarter.
Analysts polled by FactSet anticipated, on average, earnings of $1.75 per share.
Revenue rose less than 1 percent to $8.12 billion from $8.08 billion. Analysts expected $8 billion.
The company's aerospace and information systems and technology segments posted higher revenue for the quarter. Its combat systems and marine systems revenue declined.
General Dynamics forecast 2014 earnings per share will range from $6.80 to $6.85. Analysts expected full-year earnings of $7.24 per share.
The company also said it will buy back $11.4 million in stock — the remainder under its current authorization — under an accelerated program and seek approval during its board meeting in February for a new share repurchase program.
Shares in the company, based in Falls Church, Va., jumped $4.35, or 4.6 percent, to close at $99.65.
