General Dynamics net surges, aided by tanks and Gulfstreams

By Christopher Hinton, MarketWatch NEW YORK (MarketWatch) -- General Dynamics Corp. on Wednesday raised its annual earnings forecast and reported solid growth in quarterly net on higher sales of tanks and other combat vehicles. Further, the company's backlog for Gulfstream business jets soared more 50% to $18.8 billion on strong demand for its wide-cabin G650 plane. For its aerospace unit, the profit margin rose about a point an a half to 18%, thanks to improved production costs. Reiterating its buy rating on the stock, Standard & Poor's equity research said it expects demand for high-end jets to continue despite higher jet fuel costs, and praised General Dynamics' strong growth across all its business segments. Shares of the Falls Church, Va.-based General Dynamics were up 4.6% at last check to $87.24. For the year, the... [read full story]