FALLS CHURCH, Va. --- General Dynamics today reported full-year earnings from continuing operations of $3.4 billion on revenue of $36.2 billion, and quarterly earnings from continuing operations of $909 million on $10.4 billion in revenue. Year-over-year revenue grew in all five segments.
Fourth-quarter 2018 earnings from continuing operations, which grew 42.9 percent over fourth-quarter 2017, would have grown 20.4 percent absent a one-time, non-cash decrement to earnings in 2017 from the 2017 Tax Cuts and Jobs Act. On a per share basis, diluted earnings per share (EPS) from continuing operations was $3.07, a 46.2 percent increase over the year-ago quarter. For the year, diluted EPS from continuing operations was $11.22, a 17.4 percent increase from 2017.
“General Dynamics delivered solid performance in 2018,” said Phebe N. Novakovic, chairman and chief executive officer. “Our Aerospace segment successfully managed through a new model transition while achieving good order intake. Our defense businesses had strong operating performance and continued to book significant new business.”
Aerospace’s 2018 full-year revenue was $8.5 billion, with operating earnings of $1.5 billion and an operating margin of 17.6 percent, even with its ongoing transition to new aircraft models.
Book-to-bill was 0.8-to-1.0 for the quarter and 0.9-to-1.0 for the year. Gulfstream delivered the first all-new G500 in the third quarter and continued G500 deliveries in the fourth quarter.
-- Combat Systems:
Combat Systems reported 2018 full-year revenue of $6.2 billion, up 4.9 percent over 2017. Operating earnings were $962 million and operating margin was 15.4 percent.
The group achieved a book-to-bill of 1.3-to-1.0 for the fourth quarter, building on significant awards earlier in the year including M1A2 Abrams tank upgrades and additional Stryker double-V-hull vehicles. The group was also selected to deliver prototype vehicles for the U.S. Army’s Mobile Protected Firepower (MPF) program.
-- Information Technology:
Information Technology had 2018 full-year revenue of $8.3 billion, up 87.5 percent over 2017 and up 4.3 percent excluding the acquisition of CSRA. Operating earnings for the year were $608 million, up 63 percent over 2017.
The combination of General Dynamics Information Technology and CSRA in the second quarter created a premier service provider to customers across defense, intelligence and federal civilian markets.
The group achieved a book-to-bill of 1.0-to-1.0 for the year, with $8 billion in backlog and $25 billion in total estimated contract value.
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