General Dynamics Corporation (NYSE: GD) delivered a stock rise of over 3.5% on Jan 24th, 2018 (as of 12:36PM EST; Source: Google finance) driven by their solid fourth quarter of 2017 performance.
The group’s operating margin rose 250 basis points to 12.5% during the fourth quarter of 2017 against pcp. For 2017 year, operating margin enhanced 130 basis points to 13.5% against pcp. The group also reported a total backlog of $63.2 billion at the end of 2017.
Total potential contract value, the sum of all backlog components, reached $88 billion as of the end of the year. The group’s Revenue rose 8.1% in the fourth quarter.
Overall, the Net cash provided by operating activities reached $3.9 billion against $2.2 billion in 2016. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $3.5 billion for the year.
As per the segment performance, the Aerospace division delivered a revenue of $8.13 billion, operating earnings of $1.59 billion and operating margin of 19.6 percent for 2017. The group saw a strong order intake in the fourth quarter across the Gulfstream portfolio.
Combat Systems reported a revenue rose of 7.6% yoy reaching $5.95 billion, while operating margin reached 15.8 percent. The segment got several major contracts in 2017, including awards to modernize Abrams tanks for the U.S. Army and its allies and several orders across their European vehicle business.
Information Systems and Technology delivered a full-year revenue of $8.89 billion, which is a fall of 2.8% against pcp. The group had a book-to-bill ratio (orders divided by revenue) higher than one-to-one in 2017 boosted by ongoing strong demand for its products and services.
Marine Systems delivered a full-year revenue of $8 billion, while operating margin reached 8.6 percent. Earnings surged 15.1 percent and margin improved 120 basis points. The group got a considerable backlog and won multiple significant contracts in 2017 including the design and prototype development for the U.S. Navy’s Columbia-class submarine.