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. "2014 is off to a solid start as we remain committed to robust operating performance, engaging in wise capital deployment and driving excellence throughout the company."