General Dynamics Profit Rises 23% on Sales of Vehicles, Jets - Mission accomplished!

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http://www.bloomberg.com/apps/news?pid=20601087&sid=aq3s4TF6Ni94&refer=home

July 25 (Bloomberg) -- General Dynamics Corp., the biggest maker of armored vehicles for the U.S. military, said profit rose 23 percent on increased sales of troop transports for the Iraq war and more orders for Gulfstream business jets.

The company raised its 2007 earnings forecast after second quarter profit from continuing operations climbed to $518 million, or $1.27 a share, from $420 million, or $1.03, a year earlier, Falls Church, Virginia-based General Dynamics said in a statement today. Revenue increased 11 percent to $6.59 billion. Profit and revenue beat analysts' estimates.

Chief Executive Officer Nicholas Chabraja has boosted sales of Stryker troop transports and equipment to re-supply forces in the four-year-old Iraq war, which lifted combat systems revenue 19 percent in the quarter. General Dynamics in June began delivering Mine-Resistant, Ambush-Protected vehicles, or MRAPS, to protect soldiers from homemade bombs. The strengthening economy has prompted companies to order more business jets.

``General Dynamics's combat group has the right positioning for the moment,'' said Mark Jordan, an analyst with AG Edwards & Sons Inc. in St. Louis. ``We have stressed our inventory of fighting vehicles through these deployments.'' He rates the shares ``hold'' and doesn't own any.