General Dynamics’ quarterly profit rises

RICHMOND, Va. – Defense contractor General Dynamics Corp., the parent of Bath Iron Works, said Wednesday its third-quarter earnings rose 16 percent, surpassing Wall Street’s estimates, on almost across-the-board improvements in its businesses.

In a conference call, Chief Executive Officer Nicholas D. Chabraja called it “a powerful quarter” for the company. He raised the company’s full-year earnings guidance to $7.15 per share, compared with the previous forecast of $7.05 a share.

The Falls Church, Va.-based company said it earned $374 million, or $1.84 per share, in the quarter ended Sept. 30 despite a $31 million charge related to construction difficulties in its commercial shipbuilding program at San Diego. That compared with net income of $322 million, or $1.60 per share, in the year-earlier period.

The marine-systems unit experienced a 16 percent decline in operating earnings, to $52 million, because of the shipbuilding charge. Its quarterly revenue was up 1.5 percent to $1.17 billion.

Going forward, Chabraja predicted improvements in the marine-systems division.