General Dynamics ( GD) boasted a 16% revenue rise for the second quarter and reaffirmed full-year earnings guidance.

The Falls Church, Va., defense contractor made $420 million, or $1.03 a share, from continuing operations for the second quarter, up from the year-ago $338 million, or 83 cents a share. Revenue rose to $5.9 billion from $5.1 billion a year earlier. Analysts surveyed by Thomson Financial were looking for a $1-a-share profit on sales of $5.76 billion.

"General Dynamics once again has delivered strong results," said CEO Nicholas D. Chabraja. "Sales and operating earnings increased in all four business segments compared to the year-ago period, year-to-date cash generation continues to meet our expectations and funded backlog grew by $1.3 billion quarter over quarter."

Funded backlog at the end of the second quarter was $30.5 billion, and total backlog was $42.4 billion, compared to $29.2 billion and $41.6 billion, respectively, at the end of the first quarter of 2006.

For the first half of 2006, net cash provided by operating activities was $793 million, while free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $664 million.

The company said it expects to match the Wall Street earnings target of $4.15 a share for the year.