FALLS CHURCH, Va., Oct. 22, 2014 /PRNewswire/ -- General Dynamics (NYSE: GD) today reported third-quarter 2014 net earnings from continuing operations of $694 million, or $2.05 per share on a diluted basis, on revenues of $7.75 billion. This compares to 2013 third-quarter net earnings from continuing operations of $652 million, or $1.84 per diluted share, on revenues of $7.74 billion. Third-quarter 2014 operating earnings rose $38 million to $999 million, a 4 percent increase over the year-ago quarter.

Margins

Company-wide operating margins for the third quarter of 2014 were 12.9 percent, 50 basis points higher than third-quarter 2013 margins.

Cash

Net cash provided by operating activities in third-quarter 2014 was $2.5 billion. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $2.3 billion in the quarter.

Backlog

Total backlog at the end of third-quarter 2014 was $74.4 billion, up 56 percent from the third quarter of 2013. The estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $26.7 billion. Total potential contract value, the sum of all backlog components, was $101.1 billion at the end of the quarter.

The Aerospace group experienced continued demand in the quarter with order activity across its product portfolio. Significant awards received in the quarter from the company's defense groups include a $5.9 billion contract to deliver SCOUT Specialist Vehicles to the British Army, $175 million from the U.S. Navy to provide planning and support services for nuclear submarines, $165 million for the U.S. Army's Common Hardware Systems-4 program, and $140 million for maintenance and overhaul services for the Navy's USS Pearl Harbor.

"General Dynamics had a very strong quarter, evident in our operating earnings, operating margins at 12.9 percent and solid cash performance," said Phebe N. Novakovic, chairman and chief executive officer. "With a continued focus on operating performance and the company's significant increase in backlog throughout 2014, we are well-positioned for the opportunities ahead."

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 93,500 people worldwide. The company is a market leader in business aviation; combat vehicles, weapons systems and munitions; shipbuilding; and communication and information technology systems. More information about the company is available 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.