Revenue increased by 7.3% to $9.76 billion driven by aerospace and defense portfolios. The results reflected its relentless focus on driving down costs and improving performance.
General Dynamics’ total backlog was $67.4 billion at the end of third-quarter 2019. Estimated potential contract value, representing management’s estimate of value in unfunded indefinite-delivery, indefinite-quantity (IDIQ) contracts, and unexercised options, was $35.6 billion.
Total estimated contract value, the sum of all backlog components, was $103 billion, down 1% year-over-year. Order activity remained strong across the aerospace and defense portfolios, with a book-to-bill of 1-to-1 on 7.3% year-over-year revenue growth.
The significant awards in the defense portfolios in the quarter included $1.3 billion from the Canadian government for production of armored combat support vehicles and $1.1 billion from the U.S. Navy for design and construction of two Expeditionary Sea Base auxiliary support ships and a $550 million option for an additional ship.
The company paid $295 million in dividends and repaid about $450 million of its outstanding commercial paper in the third quarter. Capital expenditures totaled $244 million, up 45% from the year-ago quarter, driven by continued strategic investments in Marine Systems.