Our Bureau
10:36 AM, April 24, 2014

General Dynamics today reported first-quarter 2014 net earnings of $595 million, or $1.71 per share on a diluted basis, compared to 2013 first-quarter net earnings of $571 million, or$1.62 per diluted share. First-quarter 2014 revenues were $7.3 billion.

In comparison, for the first quarter of 2013, net cash provided by operating activities was $504 million, and free cash flow from operations was $429 million.

Funded backlog at the end of first-quarter 2014 was $48.3 billion, and total backlog was $56 billion, a more than 20 percent increase from year-end 2013. The company received a $10 billion 14-year contract from the Government of Canada's Canadian Commercial Corporation to provide military and commercial vehicles, training, and support services to an international customer, with $3 billion in options.

Additional significant awards received in the quarter include $645 million for an additionalArleigh Burke-class destroyer, $520 million for long-lead material for Virginia-class Block IV submarines, $210 million for continued support of the U.K.'s Bowman tactical communication system, and $165 million for combat and seaframe control systems on the Navy's Independence-variant Littoral Combat Ship.

In addition to total backlog, estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $28.7 billion. Total potential contract value, the sum of all backlog components, was $84.7 billion at the end of the quarter.

"General Dynamics' first quarter operating performance was strong, demonstrated by 11.9 percent operating margins," saidPhebe N. Novakovic, chairman and chief executive officer.