Defense contractor General Dynamics Corp. said Wednesday its second-quarter profit rose 25 percent, boosted by higher sales of armored vehicles and tanks.

Company shares rose $2.17, or 2.6 percent, to $85.62 in morning trading.

The company, parent to Bath Iron Works in Maine, earned $641 million, or $1.60 per share, in the latest quarter, compared with $513 million, or $1.26 per share, a year earlier. Excluding a 9-cent gain from a tax refund lawsuit settlement, earnings were $1.51 per share.

Analysts polled by Thomson Financial were expecting $1.44 per share in quarterly earnings from continuing operations on revenue of $7.23 billion.

Quarterly revenue rose nearly 11 percent to $7.30 billion.

Helped by expectations of soaring sales in its corporate jet business, the company also significantly raised its 2008 earnings outlook, saying it expects a range of $6 to $6.05 per share. Previous company guidance was between $5.55 and $5.65 per share in 2008.