General Dynamics' Profit Falls - TheStreet

General Dynamics' Profit Falls

The defense contractor's revenue rises, however.
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Defense contractor

General Dynamics

(GD) - Get Report

reported a drop in second-quarter profit despite an increase in revenue.

The company earned $242 million, or $1.22 a share, compared with $263 million, or $1.29 a share, in the prior-year quarter. Analysts were looking for $1.17 a share.

The Falls Church, Va.-based company reported revenue of $3.9 billion, up 12% from last year's $3.5 billion. Total sales at its information systems and technology unit were $1.15 billion, up from $946 million last year. But the company's aerospace segment sales fell to $715 million from the prior year's $880 million.

New awards for the company's information systems and technology group included a $1.95 billion U.S. Air Force contract and a U.S. Army award worth up to $2 billion, the company said.

Additionally, the company said it expects to close its

acquisition of Veridian in the third quarter and that it will be accretive to earnings immediately.

General Dynamics said funded backlog at the 2003 midyear point was $23.5 billion, and total backlog was $30.1 billion. By mid-2002, funded backlog was $20.5 billion and total backlog was $25.5 billion.

Shares of the company were down 3.8% at $76.80 Wednesday morning.