General Dynamics
June 21, 2011 – 11:22 am
Business Profile
General Dynamics was formed in 1952 by the merger of Electric Boat Company, Canadair Ltd. and few other companies. Over the years the Company sold all of its businesses except two core defense businesses viz. Land Systems and Electric Boat. Since 1995, General Dynamics has entered new markets and geographies through acquisition of companies specializing in information technology services and products, especially in the control, command, communications, intelligence, computing, and reconnaissance and surveillance sector.
General Dynamics entered the aviation support-services and business-jet aircraft sector by acquisition of Gulfstream Aerospace Corporation in 1999. In the past decade, the Company has acquired 43 companies. In 2006 alone, the Company has acquired three businesses. Come of the recently completed acquisitions by the Company includes SNC Technologies Inc in January 2007, Chamberlain Manufacturing Corp.’s Scranton Operations in July 2006, Anteon in June 2006, FC Business Systems in January 2006, Itronix Corporation in September 2005, Tadpole Computer, Inc. in August 2005, MAYA Viz Ltd. in April 2005.
The Company currently offers business-jet aircrafts; combat vehicles, armaments, and munitions; shipbuilding and maritime systems; and information systems and technologies critical to war missions. General Dynamics major products include the Arleigh Burke-class Aegis destroyer, Virginia-class nuclear submarine, Abrams M1A2 digitized battle tank, the Gulfstream family of business jets, medium-caliber munitions and gun systems, and the Stryker eight-wheeled assault vehicle.
The Company generated revenues of $24.1 billion in 2006, up 14.7% from $21.0 billion in 2005. The Company anticipates 2007 revenues of approximately $27 billion. General Dynamics’ net earnings increased 27.0% to $1,856 million in 2006 from 1,461 million in 2005. The Company’s operating earnings grew 20% to $2.6 billion and operating margin increased 50 basis points to 10.9% in 2006 from 10.4% in 2005. The Company’s total order backlog is $43,667 million as of December 31, 2006 compared to $40,754 million as of December 31, 2005.
General Dynamics is headquartered in Falls Church, Virginia and employs approximately 82,900 people across the globe. General Dynamics carries out its operations through four main business segments including Aerospace, Marine Systems, Combat Systems, and Information Systems and Technology.
Aerospace: The segment designs, manufacturers and services advanced business-jet aircrafts. The segment comprises two divisions viz. Gulfstream Aerospace Corporation and General Dynamics Aviation Services.
Aerospace segment’s product offering includes six aircrafts, with a broad range of speed, price, cabin dimensions and performance options. The segment competes in the mid-size to very-long-range market segments and serves various government, private individuals and corporate users.
Since 1958, Gulfstream Aerospace Corporation has produced approximately 1,600 aircrafts. Its broad range of aircrafts include Gulfstream G150, Gulfstream G200, Gulfstream G350, Gulfstream G450, Gulfstream G500 and Gulfstream G550. Gulfstream also provides aircraft ownership services through Gulfstream Financial Services Division and Gulfstream Pre-Owned Aircraft Sales. The division employs over 7,900 people at seven locations.
General Dynamics Aviation Services carries out airframe, avionics, engine and refurbishment work at six locations in US and one in the UK. The group has headquarters in Savannah, Georgia, and service support and pre-positioned spare-parts depots in Asia, Europe, the Middle East and Latin America.
The segment’s revenues increased 19.9% to $4,116 million in 2006 over $3,433 million in 2005. Aerospace’s operating margin increased 120 basis points to 15.6% in 2006 from 14.4% in 2005.
Combat Systems: The segment produces and supports land and expeditionary combat systems for the US military and its allies. Combat Systems’ major product offerings includes wheeled armored combat vehicles; main battle tanks and infantry fighting vehicles; guns and ammunition-handling systems; ammunition and ordnance; reactive armor and other protection systems; mobile bridge systems; chemical and biohazard detection products; and complex composite components for aerospace systems.
The segment’s revenues increased 19.2% to $5,983 million in 2006 over $5,021 million in 2005. However, Combat Systems’ operating margin declined 20 basis points to 11.3% in 2006 from 11.5% in 2005.
Marine Systems: The segment designs, builds and supports submarines and ships for the US Navy and other commercial customers. Marine Systems’ major product line includes Virginia-class attack submarines; Trident
ballistic-missile submarine conversions; surface combatants; auxiliary and combat-logistics ships; commercial tankers; engineering design support; and overhaul, repair and life-cycle support services.
The segment’s revenues increased 5.2% to $4,940 million in 2006 over $4,695 million in 2005. Marine System’s operating margin increased 230 basis points to 7.6% in 2006 from 5.3% in 2005.
Information Systems and Technology: The segment supports a wide range of government and commercial needs through a broad range of technology and service capabilities including systems integration expertise; hardware and software products; and engineering, management and support services.
The segment’s revenues increased 15.3% to $9,024 million in 2006 over $7,826 million in 2005. However, Information Systems and Technology’s operating margin declined 30 basis points to 10.8% in 2006 from 11.1% in 2005.