Discuss Company Profile of General Dynamics within the Company Profiles & News !! forums, part of the Mirror View - Ebooks Links & Miscellenous Reading Material category; General Dynamics Corporation (NYSE: GD) is a U.S. defense conglomerate formed by mergers and divestitures, and as of 2008 it ...
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Company Profile of General Dynamics
Company Profile of General Dynamics - May 7th, 2011
General Dynamics Corporation (NYSE: GD) is a U.S. defense conglomerate formed by mergers and divestitures, and as of 2008 it is the fifth largest defense contractor in the world. The company has changed markedly in the post-Cold War era of defense consolidation. The company has four main business segments: Marine Systems, Combat Systems, Information Systems and Technology, and Aerospace. The company's former Fort Worth Division manufactured the F-16 Fighting Falcon, the most-produced Western jet fighter, but that subsidiary was sold to Lockheed in 1993. GD reentered the airframe business in 1999 with their purchase of Gulfstream Aerospace.
General Dynamics Corporation offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; military and commercial shipbuilding, and communications and information technology. General Dynamics operates through four business groups: Aerospace, Combat Systems, Marine Systems, and Information Systems and Technology. In May 2010, the Company acquired EBV Explosives Environmental Company.
The Company’s Aerospace group designs, manufactures and outfits a family of mid- and large-cabin business-jet aircraft, and provides maintenance, refurbishment, outfitting and aircraft services for a variety of business-jet, narrow-body and wide-body aircraft customers. The Aerospace group’s Gulfstream products include eight aircraft: G150, G200, G250, G350, G450, G500, G550 and G650. The Company is a provider of aircraft for government and military service, with Gulfstream aircraft operating in nearly 40 nations. These government aircraft are used for head-of-state/executive transportation and a variety of special-mission applications, including aerial reconnaissance, maritime surveillance, weather research and astronaut training.
The Company’s second-generation Enhanced Vision System (EVS II) and the Synthetic Vision-Primary Flight Display (SV-PFD), assist the pilot during low-visibility conditions. EVS II is a specially designed, forward-looking infrared (FLIR) camera that projects a real-world infrared image on the pilot’s head-up display (HUD), while Synthetic Vision provides three-dimensional images of the terrain, runway environment and obstacles on the pilot’s primary head-down display. Jet Aviation has also expanded the Aerospace group’s portfolio to include premium aircraft-outfitting operations for airframes produced by other original equipment manufacturers (OEMs). Jet Aviation performs aircraft completions and refurbishments for business jets and narrow- and wide-body commercial aircraft at locations in Europe and the United States.
The Combat Systems group is engaged in the design, development, production, support and enhancement of tracked and wheeled military vehicles, weapons systems and munitions for the United States and its allies. The Company’s product lines include wheeled combat and tactical vehicles, main battle tanks and tracked infantry vehicles, munitions and propellant, rockets and gun systems, and drivetrain components and aftermarket parts. Combat Systems’ military vehicle platforms consists of a variety of wheeled combat vehicles and main battle tanks, including the Stryker wheeled combat vehicle and the Abrams main battle tank. The Stryker supports numerous missions with 10 variants: infantry carrier, command and control, medical evacuation, fire support, engineering, anti-tank, mortar carrier, reconnaissance, mobile gun system (MGS), and nuclear, biological, and chemical reconnaissance vehicle (NBCRV). Combat Systems provides technology upgrades to the Abrams, such as the System Enhancement Package (SEP). The SEP-configured tank is a digital platform with a command-and-control system, second-generation thermal sights and armor. Complementing these combat-vehicle programs are Combat Systems’ armor, weapons-system and munitions programs.
For ground forces, the Combat Systems manufactures vehicle armor, M2 heavy machine guns and MK19 and MK47 grenade launchers. For airborne platforms, Combat Systems produces weapons for United States fighter aircraft, including all high-speed Gatling guns for fixed-wing aircraft and the Hydra-70 family of rockets. Combat Systems is also a manufacturer and supplier of engineered axles, suspensions, brakes and aftermarket parts for heavy payload vehicles for a variety of military and commercial customers. The Combat Systems also holds munitions supply positions for products, such as the 120 millimeter mortar and the 155 millimeter and 105 millimeter artillery projectile for the United States Government; conventional bomb structures for the United States Government; mortar systems and large-caliber ammunition for the Canadian Department of National Defence, and military propellant for the North American market. In addition, Combat Systems is a source for the United States Military’s small-caliber ammunition needs.
Combat Systems provides logistics support in the United States’ ongoing operations in Iraq and Afghanistan. As the provider of Abrams tanks and Stryker vehicles, Combat Systems is the primary contractor for the maintenance, repair and reset of these vehicles. Combat Systems is also a provider for the upgrade of Mine-Resistant, Ambush-Protected (MRAP) vehicles. Combat Systems is developing the Expeditionary Fighting Vehicle (EFV), a mission-critical combat platform designed to address the United States Marine Corps' amphibious assault requirement. It has manufacturing facilities in Australia, Austria, Brazil, Canada, France, Germany, Spain and Switzerland, and has customers in more than 30 countries.
Combat Systems’ European business offers a range of products, including light- and medium-weight tracked and wheeled tactical vehicles, amphibious bridge systems, artillery systems, light weapons, ammunition and propellants. Its key platforms and their customers include the Leopard 2E tank and the Pizarro tracked infantry vehicle, produced for the Spanish army; the EAGLE wheeled vehicle for Germany, and the Piranha and Pandur wheeled armored vehicles, which it produces for several European and Middle Eastern countries. Its United States export activities include Abrams tanks and light armored vehicles (LAVs) for United States allies in the Middle East. During the year ended December 31, 2010, Combat Systems was selected to manufacture tracked combat vehicle hulls for the Israeli Ministry of Defense.
The Company's Marine Systems group designs, builds and supports submarines and surface ships for the United States Navy and commercial ships for Jones Act customers. Marine Systems is a primary shipbuilder for the Navy. Its portfolio of platforms and capabilities includes nuclear-powered submarines (Virginia Class); surface combatants (DDG-51, DDG-1000, LCS); auxiliary and combat-logistics ships (T-AKE); commercial ships; design and engineering, and overhaul, repair and lifecycle support services. The majority of Marine Systems’ operations support the United States Navy, such as the construction of new ships, and the design and development of platforms. It also provides maintenance and repair services.
The Marine Systems’ three mature Navy construction programs are the fast-attack Virginia-class nuclear-powered submarine, the Arleigh Burke-class (DDG-51) guided-missile destroyer, and the Lewis and Clark-class (T-AKE) dry cargo/ammunition combat-logistics ship. The Virginia-class submarine is a United States submarine designed to address post-cold war threats, including capabilities tailored for both open-ocean and near-shore missions. These stealthy ships are suited for a variety of assignments, including clandestine intelligence gathering, special-operations missions and sea-based missile launch. The Virginia-class program includes 30 submarines. During 2010, Marine Systems delivered the seventh boat in a record 65 months. Marine Systems is also the designer and producer of Arleigh Burke destroyers, an active destroyer in the Navy’s global surface fleet. During 2010, it delivered USS Jason Dunham, a DDG-51 ship the Navy had contracted with the Company to build.
The Marine Systems’ T-AKE combat-logistics ship supports multiple missions for the navy, including replenishment at sea for the United States and North Atlantic Treaty Organization (NATO) operating forces. In addition to the design and construction programs, the Marine Systems group provides ship and submarine overhaul, repair and lifecycle support services to extend the service life of these vessels. It also provides international allies with program management, planning and engineering design support for submarine and surface-ship construction programs. It also designs and produces ships for commercial customers to meet the Jones Act requirement that ships carrying cargo between United States ports be built in United States shipyards.
Information Systems and Technology
The Company’s Information Systems and Technology group provides technologies, products and services that support a range of Government and commercial digital-communication and information-sharing needs. Its product and service offerings fall into a three-part portfolio that includes tactical communication systems, information technology services, and intelligence, surveillance and reconnaissance systems. The tactical communication systems designs, manufactures and delivers communications network systems, ruggedized computers, command-and-control systems and operational hardware to customers within the United States Department of Defense, the intelligence community, federal civilian agencies and international customers.
The United States Army’s Warfighter Information Network-Tactical (WIN-T) is the Army’s primary battlefield communications network, and as the prime contractor for this program, the Company is responsible for the design, engineering, integration, production, program management and support of the network. The Company is also developing Joint Tactical Radio System (JTRS) Handheld, Manpack, Small Form Fit (HMS) radios to connect soldiers, sensors and robotic platforms. Information Systems and Technology delivers the modern communications and information-sharing benefits to many civilian customers, including the United States Department of Homeland Security and other federal civilian agencies. The Company provides many of these capabilities to non-United States customers as well, including the United Kingdom’s Ministry of Defence, the Canadian Department of National Defence, the Royal Netherlands Marine Corps and the Romanian Ministry of Defense.
The Company provides mission-critical information technology (IT) and mission-support services to the United States defense and intelligence communities, the Department of Homeland Security and other federal civilian agencies, and commercial and international customers. Information Systems and Technology specializes in design, development, integration, maintenance and security of wireless and wire-line networks and enterprise infrastructure; mission-operations simulation and training systems and services; large-scale data center consolidation and modernization, and healthcare technology solutions and services. Information Systems and Technology also supplies network-modernization and IT infrastructure services to United States Government customers. As of December 31, 2010, it had provided IT support services to more than 75 air force bases. It supports all air force main operating bases.
Information Systems and Technology is a provider of healthcare technology solutions, including data management, analytics, claims fraud prevention and detection software, decision support and process automation that support the needs of both the United States federal agencies and commercial healthcare organizations. Its offerings include data management, analytics, fraud prevention and detection software, decision support and process automation solutions. In Afghanistan and Iraq, it supports the army’s military healthcare IT mission. Information Systems and Technology provides also provide mission-related systems development, integration and operations support to customers in the United States defense, intelligence and homeland security communities, and to United States allies. These offerings include open-architecture mission systems; signals and information collection, processing and distribution systems; design, development and integration of imagery solutions; sensors and cameras; special-purpose computing, and cyber security services and products.
Information Systems and Technology is a provider of personnel with mission-specific experience in executing programs in the intelligence field. In partnership with the United States Joint Forces Command, the Company integrates collaborative command, control, communications, computing, intelligence, surveillance and reconnaissance (C4ISR) environments in support of worldwide training exercises. Information Systems and Technology is a support contractor for the United States Computer Emergency Response Team (US-CERT), which provides response support and defense against cyber attacks for United States executive branch agencies, and information sharing and collaboration with state and local government, industry and international partners.
The Company competes with Northrop Grumman Corporation.
In January 1991, William A. Anders was assigned to reorganize General Dynamics according to the new market realities. He assumed the chief executive office, while Stanley Pace took a seat on the company's board of directors. Anders' strategy in the face of industry changes was to cut employees, trim research and development, divest peripheral businesses, and reduce capital spending. By June 1992, Anders had cut 25 percent of the work force (24,800 employees) and put $1.7 billion in assets up for sale. Gains from divestments were rolled back to shareholders, and, by 1993, almost $600 million in debt was paid, which helped boost the company's share price. General Dynamics, which had suffered a $578 million loss in 1990, recovered to realize a $305 million profit the following year.
Despite the improving financial picture, General Dynamics came under criticism from the Pentagon and Department of Defense for a lucrative executive Gain-Sharing plan that was tied to increases in the company's share price. In 1991 alone, as General Dynamics whittled away at its employee roster, Business Week reported that 25 top managers received $18 million in incentive bonuses.
Anders pronounced the transformation of General Dynamics complete in 1993's annual report. After selling its Texas aircraft operations to Lockheed for $1.5 billion, the company emerged with two primary business segments: nuclear submarines and armored vehicles. The corporate work force had shrunk from about 86,000 in 1991 to 30,500 in 1993, and debt decreased 94 percent during the period. Government contracts still comprised 94 percent of the company's annual sales, which remained essentially flat over the reorganization period. Operating earnings, however, increased by $98 million, from $211 million in 1991 to $309 million in 1993. That year, Anders relinquished the chief executive office to former president James Mellor and assumed General Dynamics' chair as a transitional measure through April 1994.
Principal Subsidiaries: Electric Boat Division; Land Systems Division; American Overseas Marine Corporation; Freeman Energy Corporation.
Market Cap (Mil.): $27,412.71
Shares Outstanding (Mil.): 372.00
Annual Dividend: 1.88
Yield (%): 2.55
GD.N Industry Sector
P/E (TTM): 10.64 23.01 16.87
EPS (TTM): 11.56 -- --
ROI: 12.32 4.97 3.27
ROE: 19.86 16.89 5.85
Incorporated: 1925 as Electric Boat Company
Sales: $3.19 billion
Stock Exchanges: New York Chicago Pacific
SICs: 3721 Aircraft; 3761 Guided Missiles and Space Vehicles; 3728 Aircraft Parts and Equipment, Nec.; 3812 Search and Navigation Equipment; 3483 Ammunition, Except for Small Arms, Nec; 3731 Ship Building and Repairing; 3795 Tanks and Tank Components
Name Age Since Current Position
Johnson, Jay 64 2010 Chairman of the Board, Chief Executive Officer
Redd, L. Hugh 53 2006 Chief Financial Officer, Senior Vice President
Heebner, David 66 2010 Executive Vice President - Combat Systems
DeMuro, Gerard 55 2003 Executive Vice President - Information Systems and Technology
Lombardo, Joseph 63 2007 Executive Vice President - Aerospace; President of Gulfstream Aerospace Corporation
Novakovic, Phebe 53 2010 Executive Vice President - Marine Systems
Gallopoulos, Gregory 51 2010 Senior Vice President, General Counsel, Secretary
Oliver, Walter 65 2002 Senior Vice President - Human Resources and Administration
Helm, Robert 59 2010 Senior Vice President - Planning and Development
Aiken, Jason 38 2010 Vice President, Controller
Casey, John 56 2003 Vice President; President of Electric Boat Corporation
Von Thaer, Lewis 50 2005 Vice President; President of General Dynamics Advanced Information Systems
Marzilli, Christopher 51 2006 Vice President; President of General Dynamics C4 Systems Inc.
Johnson, S. Daniel 63 2008 Vice President; President - General Dynamics Information Technology
Roualet, Mark 52 2008 Vice President; President of General Dynamics Land Systems
Crown, James 57 2010 Lead Independent Director
Chabraja, Nicholas 68 2010 Director
Joulwan, George 71 1998 Independent Director
Kaminski, Paul 68 1997 Independent Director
Fricks, William 66 2003 Independent Director
Lyles, Lester 64 2003 Independent Director
Keane, John 68 2004 Independent Director
Walmsley, Robert 70 2004 Independent Director
Osborn, William 63 2009 Independent Director
Barra, Mary 49 2011 Independent Director
3190 Fairview Park Drive
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