General Dynamics earnings up 11 percent

FALLS CHURCH, Va. – A strong performance by General Dynamics’ combat systems division led the company to an 11 percent increase in quarterly earnings, matching Wall Street expectations.

The parent company of Maine’s Bath Iron Works announced Wednesday a profit of $227 million, or $1.12 a share, for the second quarter of 2001. That compares to $204 million, or $1.01 a share, in net earnings for the second quarter of 2000.

The earnings matched the consensus estimate of 15 analysts surveyed by Thomson Financial/First Call.

Sales totaled $3 billion, a 13 percent increase from 2000 second-quarter sales of $2.6 billion.

“At the year’s halfway point, we’re right on track to achieve our goals for 2001,” said General Dynamics chairman and CEO Nicholas Chabraja.

General Dynamics, which has made several large acquisitions in recent years, is seeking federal approval for its $2.1 billion purchase of Newport News Shipbuilding. In a conference call with analysts Wednesday, Chabraja said he expects to gain approval for the merger by Sept. 30.