Page 43: of Maritime Reporter Magazine (June 1973)

General Dynamics

Reports Earnings

General Dynamics Corporation has reported that its 1973 first quar- ter earnings were 44 percent high- er than last year's.

David S. Lewis, chairman and chief executive officer, said earn- ings for*1973's first quarter ending

March 31 were $7,366,000 on sales of $398,033,000, equal to 70 cents per common share. This compares with 1972 first quarter earnings of $5,104,000, or 48 cents per share, on sales of $382,288,000.

Shareholders at the company's annual meeting in St. Louis, Mo., elected Robert F. Ellsworth to the board of directors, succeeding

Stanley dej. Osborne, who retired from the board after serving since 1970.

Mr. Ellsworth is president and chief executive officer of Lazard (N.Y.) International, and a general partner of Lazard Freres and Co. of New York. A native of Law- rence, Kan., he served in the U.S.

House of Representatives from

Kansas from 1961 to 1967, was an assistant to the President on the

White House staff in 1969, and was ambassador and permanent repre- sentative of the United States on

NATO (North Atlantic Treaty

Organization) from 1969 to 1971.

Mr. Lewis told the shareholders "we expect that 1973 as a whole will be a much improved year for

General Dynamics." One of the company's major goals, he said, has been "to harness our talents and abilities to go after and win new programs, so vital if we are to grow." •New programs won during the year included contracts totaling $270 million for liquefied natural gas tankers, a contract for the YF- 16 lightweight fighter prototype, design and development awards for the Trident submarine, a con- tract for an airport surveillance radar system, and a major subcon- tract on the space shuttle.

Commercial sales increased to $543 million in 1972, he said, and the company expects "that our commercial business will equal our

Government business in a very few years as our sales in both areas are increased."

He pointed out that counting on- ly commercial sales, "General Dy- namics would stand as number 223 on the most recent Fortune 500 listing."

Prospects for Stromberg-Carlson

Corporation and the Electric Boat and Pomona Divisions are par- ticularly noteworthy, Mr. Lewis stated.

Sales by Stromberg-Carlson, the nation's leading independent tele- phone equipment manufacturer, "reached $142 million in 1972—a record high—and its backlog was up 54 percent, to establish anoth- er record," he remarked. Strom- berg's earnings are anticipated to reach "an all-time high in 1973,"

Mr. Lewis added.

Electric Boat has submitted pro- posals on the 11 additional 688- class attack submarines to be bought by the Navy, "and we hope to win a sizeable part of this busi- ness to add to our seven-ship back- log of this class of ships," he said.

The Pomona Division, a leading producer of tactical missiles, had earnings in 1972 that "were the best in five years, and so far this year it is well ahead of last year's pace," he observed. "Perhaps no division in our com- pany has a better overall balance, with a mix of mature profitable programs, systems in pre-produc- tion development and more ad- vanced systems just getting started under contract," Mr. Lewis com- mented.

Capital expenditures in 1973 are expected to be about $75 million, he stated, and if the Trident sub- marine program is approved and awarded to General Dynamics, "we will have to spend approximately $100 million for corporate facilities in 1974."

New Ship Charter Firm

Opens In New York

Pot-en, Bergesen and Wise Ship- ping & Trading Corp., a new ship chartering firm has opened in New

York City, according to an an- nouncement by Stephen Wise, a member of the company. Located at 75 Ninth Avenue, New York,

N.Y., the corporation will primari- ly engage in tanker charter busi- ness, Mr. Wise disclosed.

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June 1, 1973 45