EB News April-May 2013 - Electric Boat Corporation

GENERAL DYNAMICS REPORTSFIRST-QUARTER 2013 RESULTS• Diluted EPS increases 3.2 percent• Cash generation, margin performance underscore commitmentto executiondividend increase by the company.BacklogFunded backlog at the end of first-quarter2013 was $42.4 billion, and total backlog was$48.5 billion. Significant awards receivedin the quarter include a $55 million orderfor production of Hydra-70 rockets, a $160million contract for two additional combatand seaframe control systems for U.S. NavyLittoral Combat Ships and an award valuedat more than $100 million for infrastructuresupport and modernization of a new governmentcomplex in northern Virginia.In addition to total backlog, estimatedpotential contract value was $25.2 billion,representing management’s estimate of valuein unfunded indefinite delivery, indefinitequantity (IDIQ) contracts and unexercisedoptions. Total potential contract value, thesum of all backlog components, was $73.6billion at the end of the quarter.“General Dynamics’ first-quarter performancereflects our continued focus on operations,cost improvement and cash generation,as well as our commitment to meeting ourcustomers’ requirements,” said Phebe N.Novakovic, chairman and chief executiveofficer. “This is a strong start toward achievingour objectives for the year.”FALLS CHURCH, VA.General Dynamics has reported first-quarter2013 net earnings of $571 million,or $1.62 per share on a diluted basis,compared to 2012 first-quarter net earningsof $564 million, or $1.57 per diluted share.First-quarter 2013 revenues were $7.4 billion.MarginsCompany-wide operating margins for thefirst quarter of 2013 were 11.4 percent, comparedto 11.3 percent in first-quarter 2012.CashNet cash provided by operating activitiesin the quarter totaled $504 million. Freecash flow from operations, defined as netcash provided by operating activities lesscapital expenditures, was $429 million infirst-quarter 2013. In comparison, for the firstquarter of 2012, net cash provided by operatingactivities was $414 million, and free cashflow from operations was $324 million.Capital DeploymentThe company repurchased 1 million outstandingshares on the open market in thefirst quarter, at an average price per shareof $70. In addition, in March, the board ofdirectors increased the company’s quarterlydividend by 10 percent to $0.56 per share.This represents the 16th consecutive annualINCENTIVEPROGRAMPERFORMANCEApril 2013EBNEWSCONTENTS46788991010111112/1313141516EB FACT:Lennon Describes The WayForward For Ohio ReplacementEBMA Salutes 2013 ScholarshipWinnersKeel Is Laid For SubmarineJohn WarnerQuonset Point Rescue TrainingAustralian Ambassador Visits EBElectric Boat’s Hawaii Team Delivers“As New” VLS Platforms To NavyDaffodils Raise Cancer SocietyDonationsMenitz Marks 50 Years At Electric BoatNoel Celebrates 50 Years On The JobNew Truck Adds To Fire FightingCapabilitiesEB EthicsHealth MattersRetireesNew HiresService AwardsSafety PerformanceELECTRIC BOAT NEWS is publishedby the Public Affairs Dept.75 Eastern Point RoadGroton, CT 06340DAN BARRETT, EditorBOB GALLO, GARY SLATER,GARY HALL, PhotographyPhone (860) 433-8202Fax (860) 433-8054Electric Boat’s Grotonlocation occupies118 acres along theThames River.Source: http://www.gdeb.com/about/locations/groton/Email dbarrett@gdeb.comELECTRIC BOAT NEWS | APRIL/MAY 2013 | 3