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General Dynamics Profit Rises 3.7%; Revenue Up 7%

August 02, 1985

General Dynamics, a leading defense contractor, said its second-quarter profit edged up 3.7% on a 7.7% revenue gain.

The company said it had a profit of $99.6 million in the April-June period, compared to $96 million a year earlier. Revenue rose to $1.96 billion from $1.82 billion.

The results include a $1.7-million gain from the discontinued operations at the Quincy shipbuilding division, which will be closed in 1986, the company previously announced.

For the first half, the company had a profit of $192.3 million, compared to $173.5 million for the same period a year ago.

Revenue rose to $$3.88 billion from $3.62 billion.

"We continue to be encouraged by the fine on-schedule and on-budget performance of our divisions on major production programs," David S. Lewis, chairman and chief executive, said in a prepared statement. "In general, our operations are proceeding quite well."

Lewis said the company has "cleared up the problems" with some if its accounting practices that resulted in the Defense Department suspending payments of general and administrative expenses on March 5. The suspension was lifted earlier this week, he said.

"Improved accounting procedures, which will assure accurate overhead billings on defense contracts, are being implemented throughout the company," he said.

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