General Dynamics Corp. (GD) reported Wednesday a second-quarter profit that rose above expectations but revenue that surprisingly slipped, as weakness in the aerospace business weighed. Net income rose to $737 million, or $2.61 a share, from $625 million, or $2.18 a share, in the year-ago period. The FactSet consensus for earnings per share was $2.54. Revenue slipped 0.5% to $9.22 billion from $9.26 billion, while the FactSet consensus was for an increase to $9.31 billion. Within the aerospace and defense contractor's business segments, Aerospace revenue fell 17.8% to $1.62 billion to miss the FactSet consensus of $1.75 billion and Technologies revenue rose 3.2% to $3.16 billion to miss expectations of $3.20 billion, while Marine Systems revenue increased 2.6% to $2.54 billion to top expectations of $2.53 billion and Combat Systems revenue grew 8.3% to $1.90 billion to beat forecasts of $1.76 billion. The company said overall demand remained strong, with a consolidated book-to-bill ratio of 1-to-1. The stock, which was little changed in premarket trading, has rallied 30.4% year to date while the S&P 500 has gained 17.2%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
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