General Dynamics reports $2.13 billion loss
Adjusted 2012 full-year earnings from continuing operations were $2.3 billion, or $6.48 per share fully diluted. On a GAAP basis the company reported a loss from continuing operations of $332 million for 2012, or $0.94 per share fully diluted. During the fourth quarter the company recorded a $2 billion goodwill impairment related to its Information Systems and Technology (IS&T) group. This charge recognizes the impact of slowed defense spending in the company’s IS&T businesses.
The company also recorded $867 million in other charges in the quarter, including intangible asset impairments of $301 million in its Aerospace and IS&T groups, which are detailed in Exhibit C of this press release.
"General Dynamics’ operating results in 2012 and the charges that we have recorded in the fourth quarter reflect the fact that some of our markets are contracting as government budgets shrink at home and abroad. They also suggest opportunities for improvement in some areas of our performance, which we are addressing," said Phebe N. Novakovic, chairman and chief executive officer of General Dynamics.
The company’s total backlog was $51.3 billion at the end of the year. In Q4, orders were particularly strong for the Marine Systems group, including $2.4 billion in awards to continue the development of the U.S. Navy’s next-generation strategic deterrent submarine, to purchase long-lead materials for three Virginia-class attack submarines, and to construct two commercial containerships.
Other notable orders received in the quarter include awards for additional Stryker infantry combat vehicles, for Abrams tanks for a foreign customer, and for the production of tactical networking equipment and radios for the U.S. Army. ■