-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IXzpQcUGvcKex0iNnj3eIx1S3lcNOMocLeV+vbcCBZnkRpEFyx9Li0e+av1QLCRX nglwoYyibT2NquzW7jMelQ== 0001193125-08-087498.txt : 20080423 0001193125-08-087498.hdr.sgml : 20080423 20080423094345 ACCESSION NUMBER: 0001193125-08-087498 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20080423 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080423 DATE AS OF CHANGE: 20080423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL DYNAMICS CORP CENTRAL INDEX KEY: 0000040533 STANDARD INDUSTRIAL CLASSIFICATION: SHIP & BOAT BUILDING & REPAIRING [3730] IRS NUMBER: 131673581 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03671 FILM NUMBER: 08770711 BUSINESS ADDRESS: STREET 1: 2941 FAIRVIEW PARK DRIVE STREET 2: SUITE 100 CITY: FALLS CHURCH STATE: VA ZIP: 22042-4513 BUSINESS PHONE: 7038763000 MAIL ADDRESS: STREET 1: 2941 FAIRVIEW PARK DRIVE STREET 2: SUITE 100 CITY: FALLS CHURCH STATE: VA ZIP: 22042-4513 8-K 1 d8k.htm FORM 8-K Form 8-K

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


Form 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) April 23, 2008 (April 23, 2008)

 

    

GENERAL DYNAMICS CORPORATION


    
     (Exact Name of Registrant as Specified in Its Charter)     

 

Delaware


 

1-3671


 

13-1673581


(State or Other Jurisdiction of Incorporation)   (Commission File Number)   (IRS Employer Identification No.)

 

2941 Fairview Park Drive, Suite 100,

Falls Church, Virginia


 

22042-4513


(Address of Principal Executive Offices)   (Zip Code)

 

    

(703) 876-3000


    
     (Registrant’s Telephone Number, Including Area Code)     

 

    

Not Applicable


    
     (Former Name or Former Address, If Changed Since Last Report.)     

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d- 2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



Item 2.02 Results of Operations and Financial Condition

On April 23, 2008, General Dynamics announced its financial results for the quarter ended March 30, 2008. A copy of the press release is being furnished as Exhibit 99.1 to this Form 8-K and is hereby incorporated by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits (furnished only)

 

99.1    General Dynamics press release dated April 23, 2008, with respect to the company’s financial results for the quarter ended March 30, 2008.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

GENERAL DYNAMICS CORPORATION
by   /s/ John W. Schwartz
    John W. Schwartz
    Vice President and Controller
    (Authorized Officer and Chief Accounting Officer)

Dated: April 23, 2008

 

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EX-99.1 2 dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

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2941 Fairview Park Drive

Suite 100

Falls Church, VA 22042-4513

www.generaldynamics.com

  News

April 23, 2008

Contact: Rob Doolittle

Tel: 703 876 3199

Fax: 703 876 3555

rdoolitt@generaldynamics.com

General Dynamics Reports Substantial Earnings Growth, Strong Revenue in First Quarter 2008

– Earnings from continuing operations increase 30.2 percent

– EPS from continuing operations increases 32.7 percent

FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported first-quarter 2008 earnings from continuing operations of $573 million, or $1.42 per share on a fully diluted basis, compared with 2007 first-quarter earnings from continuing operations of $440 million, or $1.07 per share fully diluted. Revenues grew to $7 billion in the quarter, an 11.2 percent increase over first-quarter 2007 revenues of $6.3 billion. Net earnings for the first quarter of 2008 were $572 million, a 31.8 percent increase over first quarter 2007.

Margins

Company-wide operating margins for the first quarter of 2008 increased 150 basis points over the first quarter of 2007, to 12.3 percent.

Backlog

The company’s funded and total backlog each grew by approximately $2.9 billion in the first quarter of 2008, to $40 billion and $49.8 billion respectively at the end of the period. Compared to first-quarter 2007, funded backlog grew by 16 percent and total backlog grew by 14.1 percent.

Cash

Net cash provided by operating activities from continuing operations in the quarter totaled $431 million. Free cash flow from operations, defined as net cash provided by operating activities from continuing operations less capital expenditures, was $346 million for the period.

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“General Dynamics’ performance in the first quarter of 2008 was excellent,” said Nicholas D. Chabraja, chairman and chief executive officer. “Earnings grew substantially over the first quarter of 2007, and significant sales-volume increases in Combat Systems, Marine Systems and the Aerospace segment reflect ongoing demand for each group’s products. While revenue in Information Systems and Technology was essentially unchanged year-over-year, the group’s operating earnings and margin rates increased for the period.

“Orders in the quarter were very strong, with $2.9 billion in future revenue being added to the company’s funded backlog. Notable contract awards include $1.2 billion for upgrades to Abrams tanks, $1.1 billion for a Virginia-class submarine and $1.4 billion for construction of the first DDG-1000 Zumwalt-class destroyer.

“Strong operating performance, lower interest expense and stock-repurchase activity in the quarter all contributed to a 34 percent increase in earnings per share on a fully diluted basis compared to the first quarter of 2007,” Chabraja said.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 84,000 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at www.generaldynamics.com.

Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.

All forward-looking statements speak only as of the date they were made. The company does not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

WEBCAST INFORMATION: General Dynamics will webcast its first-quarter securities analyst conference call, scheduled for 11:30 a.m. Eastern Time on Wednesday, April 23, 2008. The webcast will be a listen-only audio event, available at www.generaldynamics.com. An on-demand replay of the webcast will be available by 3 p.m. April 23 and will continue for 12 months. To hear a recording of the conference call by telephone, please call 888-286-8010 (international: 617-801-6888); passcode 25482657. The phone replay will be available from 3 p.m. April 23 until midnight April 30, 2008.

 

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CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

 

     First Quarter

    Variance

 
     2008

    2007

    $

    %

 

NET SALES

   $ 7,005     $ 6,300     $ 705     11.2 %

OPERATING COSTS AND EXPENSES

     6,144       5,619       (525 )      
    


 


 


     

OPERATING EARNINGS

     861       681       180     26.4 %
                                

Interest, Net

     (19 )     (26 )     7        

Other, Net

     3       1       2        
    


 


 


     

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     845       656       189     28.8 %
                                

Provision for Income Taxes

     272       216       (56 )      
    


 


 


     

EARNINGS FROM CONTINUING OPERATIONS

   $ 573     $ 440     $ 133     30.2 %
    


 


 


     

Discontinued Operations, Net of Tax

     (1 )     (6 )     5        
    


 


 


     

NET EARNINGS

   $ 572     $ 434     $ 138     31.8 %
    


 


 


     

EARNINGS PER SHARE — BASIC

                              

Continuing Operations

   $ 1.43     $ 1.08     $ 0.35     32.4 %

Discontinued Operations

   $ —       $ (0.01 )   $ 0.01        
    


 


 


     

Net Earnings

   $ 1.43     $ 1.07     $ 0.36     33.6 %
    


 


 


     

BASIC WEIGHTED AVERAGE SHARES OUTSTANDING (IN MILLIONS)

     400.8       405.6                
    


 


             

EARNINGS PER SHARE — DILUTED

                              

Continuing Operations

   $ 1.42     $ 1.07     $ 0.35     32.7 %

Discontinued Operations

   $ —       $ (0.01 )   $ 0.01        
    


 


 


     

Net Earnings

   $ 1.42     $ 1.06     $ 0.36     34.0 %
    


 


 


     

DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING (IN MILLIONS)

     403.9       409.4                
    


 


             

Exhibit A

 

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NET SALES AND OPERATING EARNINGS BY SEGMENT (UNAUDITED)

DOLLARS IN MILLIONS

 

     First Quarter

    Variance

 
     2008

    2007

    $

    %

 

NET SALES:                                                                                    


                        

AEROSPACE

   $ 1,279     $ 1,094     $ 185     16.9 %

COMBAT SYSTEMS

     1,997       1,568       429     27.4 %

MARINE SYSTEMS

     1,378       1,257       121     9.6 %

INFORMATION SYSTEMS AND TECHNOLOGY

     2,351       2,381       (30 )   (1.3 )%
    


 


 


     

TOTAL

   $ 7,005     $ 6,300     $ 705     11.2 %
    


 


 


     

OPERATING EARNINGS:                                                   


                        

AEROSPACE

   $ 236     $ 173     $ 63     36.4 %

COMBAT SYSTEMS

     259       174       85     48.9 %

MARINE SYSTEMS

     122       98       24     24.5 %

INFORMATION SYSTEMS AND TECHNOLOGY

     260       250       10     4.0 %

CORPORATE

     (16 )     (14 )     (2 )   (14.3 )%
    


 


 


     

TOTAL

   $ 861     $ 681     $ 180     26.4 %
    


 


 


     

OPERATING MARGINS:                                                   


                        

AEROSPACE

     18.5 %     15.8 %              

COMBAT SYSTEMS

     13.0 %     11.1 %              

MARINE SYSTEMS

     8.9 %     7.8 %              

INFORMATION SYSTEMS AND TECHNOLOGY

     11.1 %     10.5 %              

TOTAL

     12.3 %     10.8 %              

Exhibit B

 

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PRELIMINARY CONSOLIDATED BALANCE SHEET (UNAUDITED)

DOLLARS IN MILLIONS

 

     March 30, 2008

    December 31, 2007

 

ASSETS

                

Current Assets:

                

Cash and equivalents

   $ 2,605     $ 2,891  

Accounts receivable

     2,976       2,874  

Contracts in process

     4,381       4,337  

Inventories

     1,663       1,621  

Other current assets

     565       575  
    


 


Total Current Assets

     12,190       12,298  
    


 


Noncurrent Assets:

                

Property, plant and equipment, net

     2,487       2,472  

Intangible assets, net

     954       972  

Goodwill

     8,979       8,942  

Other assets

     1,097       1,049  
    


 


Total Noncurrent Assets

     13,517       13,435  
    


 


Total Assets

   $ 25,707     $ 25,733  
    


 


LIABILITIES AND SHAREHOLDERS’ EQUITY

                

Current Liabilities:

                

Short-term debt and current portion of long-term debt

   $ 673     $ 673  

Accounts payable

     2,091       2,318  

Customer advances and deposits

     3,483       3,440  

Other current liabilities

     2,809       2,733  
    


 


Total Current Liabilities

     9,056       9,164  
    


 


Noncurrent Liabilities:

                

Long-term debt

     2,117       2,118  

Other liabilities

     2,757       2,683  

Commitments and contingencies

                
    


 


Total Noncurrent Liabilities

     4,874       4,801  
    


 


Shareholders’ Equity:

                

Common stock

     482       482  

Surplus

     1,190       1,141  

Retained earnings

     11,812       11,379  

Treasury stock

     (2,399 )     (1,881 )

Accumulated other comprehensive income

     692       647  
    


 


Total Shareholders’ Equity

     11,777       11,768  
    


 


Total Liabilities and Shareholders’ Equity

   $ 25,707     $ 25,733  
    


 


Exhibit C

 

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PRELIMINARY CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

DOLLARS IN MILLIONS

 

     Three Months Ended

 
     March 30, 2008

    April 1, 2007

 

Cash Flows from Operating Activities:

                

Net earnings

   $ 572     $ 434  

Adjustments to reconcile net earnings to net cash provided by operating
activities:

                

Depreciation

     69       62  

Amortization

     33       39  

Stock-based compensation expense

     23       19  

Excess tax benefit from stock-based compensation

     (15 )     (18 )

Deferred income tax (benefit) provision

     (1 )     24  

Discontinued operations, net of tax

     1       6  

(Increase) decrease in assets, net of effects of business acquisitions:

                

Accounts receivable

     (97 )     74  

Contracts in process

     (41 )     (119 )

Inventories

     (42 )     (92 )

Increase (decrease) in liabilities, net of effects of business acquisitions:

                

Accounts payable

     (231 )     (54 )

Customer advances and deposits

     52       90  

Income taxes payable

     230       152  

Other current liabilities

     (140 )     (85 )

Other, net

     18       (10 )
    


 


Net Cash Provided by Operating Activities from Continuing Operations

     431       522  

Net Cash Used by Discontinued Operations — Operating Activities

     (1 )     (9 )
    


 


Net Cash Provided by Operating Activities

     430       513  
    


 


Cash Flows from Investing Activities:

                

Purchases of available-for-sale securities

     (973 )     (30 )

Sales/maturities of available-for-sale securities

     968       26  

Capital expenditures

     (85 )     (53 )

Business acquisitions, net of cash acquired

     (65 )     (298 )

Proceeds from sale of assets, net

     31       14  
    


 


Net Cash Used by Investing Activities

     (124 )     (341 )
    


 


Cash Flows from Financing Activities:

                

Purchases of common stock

     (519 )     (153 )

Dividends paid

     (117 )     (93 )

Proceeds from option exercises

     30       58  

Excess tax benefit from stock-based compensation

     15       18  

Other, net

     (1 )     (114 )
    


 


Net Cash Used by Financing Activities

     (592 )     (284 )
    


 


Net Decrease in Cash and Equivalents

     (286 )     (112 )

Cash and Equivalents at Beginning of Period

     2,891       1,604  
    


 


Cash and Equivalents at End of Period

   $ 2,605     $ 1,492  
    


 


Exhibit D

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PRELIMINARY FINANCIAL INFORMATION (UNAUDITED)

DOLLARS IN MILLIONS EXCEPT PER SHARE AND EMPLOYEE AMOUNTS

 

     First Quarter
2008


    First Quarter
2007


 
Non-GAAP Financial Measures:                 

Free Cash Flow from Operations:

                

Net Cash Provided by Operating Activities from
Continuing Operations

   $ 431     $ 522  

Capital Expenditures

     (85 )     (53 )
    


 


Free Cash Flow from Operations (A)

   $ 346     $ 469  
    


 


Return on Invested Capital:

                

Earnings from Continuing Operations

   $ 2,213     $ 1,763  

After-Tax Interest Expense

     94       104  

After-Tax Amortization Expense

     95       98  
    


 


Net Operating Profit after Taxes

     2,402       1,965  

Average Debt and Equity

     13,822       12,507  
    


 


Return on Invested Capital (B)

     17.4 %     15.7 %
    


 


Other Financial Information:

                

Debt-to-Equity (C)

     23.7 %     27.7 %

Debt-to-Capital (D)

     19.2 %     21.7 %

Book Value per Share (E)

   $ 29.57     $ 24.90  

Total Taxes Paid

   $ 41     $ 26  

Company Sponsored Research and Development (F)

   $ 110     $ 98  

Employment

     84,000       82,600  

Sales Per Employee (G)

   $ 335,900     $ 308,900  

Shares Outstanding

     398,321,560       404,665,744  

 

(A) The company’s management believes free cash flow from operations is a measurement that is useful to investors, because it portrays the company’s ability to generate cash from its core businesses for such purposes as repaying maturing debt, funding business acquisitions and paying dividends. The company uses free cash flow from operations to assess the quality of its earnings and as a performance measure in evaluating management. The most directly comparable GAAP measure to free cash flow from operations is net cash provided by operating activities from continuing operations.
(B) The company’s management believes return on invested capital is a measurement that is useful to investors, because it reflects the company’s ability to generate returns from the capital it has deployed in its operations. The company uses ROIC to evaluate investment decisions and as a performance measure in evaluating management. The company defines ROIC as net operating profit after taxes for the latest 12-month period divided by the sum of the average debt and shareholders’ equity for the same period. Net operating profit after taxes is defined as earnings from continuing operations plus after-tax interest and amortization expense. The most directly comparable GAAP measure to net operating profit after taxes is earnings from continuing operations.
(C) Debt-to-equity ratio is calculated as total debt divided by total equity as of the end of the period.
(D) Debt-to-capital ratio is calculated as total debt divided by the sum of total debt plus total equity as of the end of the period.
(E) Book value per share is calculated as total equity divided by total outstanding shares as of the end of the period.
(F) Includes independent research and development and bid and proposal costs and Gulfstream product development costs.
(G) Sales per employee is calculated by dividing net sales for the latest 12-month period by the company’s average number of employees during that period.

Exhibit E

 

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BACKLOG (UNAUDITED)

DOLLARS IN MILLIONS

 

     Funded

   Unfunded

   Total
Backlog


   Estimated Potential
Contract Value*


   Total Estimated
Contract Value


First Quarter 2008                                             


                        

AEROSPACE

   $ 11,802    $ 650    $ 12,452    $ 926    $ 13,378

COMBAT SYSTEMS

     11,116      3,171      14,287      2,292      16,579

MARINE SYSTEMS

     9,552      3,056      12,608      2,272      14,880

INFORMATION SYSTEMS AND TECHNOLOGY

     7,582      2,838      10,420      9,142      19,562
    

  

  

  

  

TOTAL

   $ 40,052    $ 9,715    $ 49,767    $ 14,632    $ 64,399
    

  

  

  

  

Fourth Quarter 2007                                           


                        

AEROSPACE

   $ 11,591    $ 665    $ 12,256    $ 925    $ 13,181

COMBAT SYSTEMS

     10,824      2,077      12,901      2,347      15,248

MARINE SYSTEMS

     7,621      4,439      12,060      2,513      14,573

INFORMATION SYSTEMS AND TECHNOLOGY

     7,158      2,457      9,615      8,721      18,336
    

  

  

  

  

TOTAL

   $ 37,194    $ 9,638    $ 46,832    $ 14,506    $ 61,338
    

  

  

  

  

First Quarter 2007                                               


                        

AEROSPACE

   $ 7,716    $ 730    $ 8,446    $ 964    $ 9,410

COMBAT SYSTEMS

     10,550      1,809      12,359      1,818      14,177

MARINE SYSTEMS

     8,927      4,445      13,372      237      13,609

INFORMATION SYSTEMS AND TECHNOLOGY

     7,343      2,111      9,454      7,998      17,452
    

  

  

  

  

TOTAL

   $ 34,536    $ 9,095    $ 43,631    $ 11,017    $ 54,648
    

  

  

  

  

 

* The estimated potential contract value represents management’s estimate of the company’s future contract value under indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options associated with existing firm contracts. Because the value in the IDIQ arrangements is subject to the customer’s future exercise of an indeterminate quantity of delivery orders, the company recognizes these contracts in backlog only when they are funded. Unexercised options are recognized in backlog when the customer exercises the option and establishes a firm order.

Exhibit F

 

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FIRST QUARTER 2008 SIGNIFICANT ORDERS (UNAUDITED)

DOLLARS IN MILLIONS

General Dynamics received the following significant contract orders during the first quarter of 2008:

Combat Systems

 

   

A multi-year contract from the U.S. Army worth $1.2 billion to upgrade 435 M1A1 Abrams main battle tanks to the M1A2 System Enhancement Package (SEP) Version Two (V2) configuration.

 

   

$359 from the Army to continue performing contractor logistics support for the Stryker program.

 

   

Combined orders worth $200 from the Army for Abrams Tank Systems Technical Support, bringing the total contract value to over $600.

 

   

$127 for 186 armored Cougar vehicles and related spares and support under the Mine Resistant Ambush Protected (MRAP) vehicle program.

 

   

$81 for RG-31 support, spares and training under the MRAP vehicle program.

 

   

$97 from the Marine Corps to continue the System Development and Demonstration phase of the Expeditionary Fighting Vehicle program.

 

   

$166 from the Army for the production of Hydra-70 (2.75-inch) rockets. This order brings the total contract value to date to almost $700. The contract has a potential value of over $900.

 

   

$110 from the Army for the production of small-caliber ammunition. This award brings the total contract value to date to approximately $630.

Marine Systems

 

   

$1.1 billion in funding from the U.S. Navy for the final Block II Virginia-class submarine.

 

   

$325 from the Navy to purchase long-lead materials for the first Block III Virginia-class submarine.

 

   

$1.4 billion from the Navy to build the first DDG-1000 Zumwalt-class destroyer.

 

 

 

$360 from the Navy for the construction of the 10th T-AKE combat-logistics ship and $100 to purchase long-lead materials for the 11th ship.

Information Systems and Technology

 

   

$263 for the system development and demonstration of the Integrated Computer System for the Future Combat Systems (FCS) program. This award brings the total contract value to over $800.

 

   

$133 from the Marine Corps to produce units of the next generation Tactical Data Network (TDN)-Data Distribution Systems-Modular. This indefinite delivery, indefinite quantity (IDIQ) contract has a potential value of $375.

 

   

$78 from the Army to provide specialized satellite communications earth terminals and support services for Increment One of the Warfighter Information Network-Tactical (WIN-T) program. This contract has a potential value of over $700.

 

   

$374 from the National Geospatial Intelligence Agency to plan, engineer, design, install, test and operate IT infrastructure. This contract has a potential value of $970.

 

   

$30 from the Navy to provide systems engineering and program management support to the Aegis Ballistic Missile Defense program. This contract has a potential value of over $190.

Exhibit G

 

– more –


LOGO

 

AIRCRAFT DELIVERIES (UNAUDITED)

 

     First Quarter

 
     2008

    2007

 
GREEN (UNITS):                 

LARGE AIRCRAFT

     22       19  

MID-SIZE AIRCRAFT

     15       11  
    


 


TOTAL

     37       30  
    


 


COMPLETIONS (UNITS):                 

LARGE AIRCRAFT

     20       20  

MID-SIZE AIRCRAFT

     16       10  
    


 


TOTAL

     36       30  
    


 


PRE-OWNED:                 

UNITS

     1       2  
    


 


SALES (millions)

   $ 9     $ 21  

OPERATING EARNINGS (millions)

   $ 1     $ 2  
    


 


AEROSPACE MARGINS

                

EXCLUDING PRE-OWNED ACTIVITY

     18.5 %     15.9 %
    


 


Exhibit H

#  #  #

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