General Dynamics Corporation announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported revenue of $8,233 million against $7,809 million a year ago. Operating earnings was $1,117 million against $1,036 million a year ago. Earnings from continuing operations before income tax were $1,094 million against $1,019 million a year ago. Earnings from continuing operations were $797 million against $764 million a year ago. Net earnings were $797 million against $764 million a year ago. Diluted earnings per share from continuing operations were $2.62 against $2.40 a year ago. Diluted net earnings per share were $2.58 against $2.40 a year ago. Return on equity was 28% against 26.4% a year ago and book value per share was $36.29 against $34.31 a year ago. Net cash provided by operating activities was $826 million against $337 million a year ago. Capital expenditures were $148 million against $209 million a year ago.

For the year, the company reported revenue of $31,353 million against $31,469 million a year ago. Operating earnings was $4,309 million against $4,178 million a year ago. Earnings from continuing operations before income tax were $4,231 million against $4,102 million a year ago. Earnings from continuing operations were $3,062 million against $2,965 million a year ago. Net earnings were $2,955 million against $2,965 million a year ago. Diluted earnings per share from continuing operations were $9.87 against $9.08 a year ago. Diluted net earnings per share were $9.52 against $9.08 a year ago. Net cash provided by operating activities was $2,198 million against $2,607 million a year ago. Capital expenditures were $392 million against $569 million a year ago. Return on equity was 28% against 26.4% a year ago and book value per share was $36.29 against $34.31 a year ago. The company ended 2016 with a cash balance of $2.3 billion on the balance sheet and a net debt position of $1.6 billion. That compares with cash of almost $2.8 billion and net debt of about $600 million at the end of 2015. Those changes are attributable to the capital deployment activities.

For 2017, the company expects net interest expense of around $110 million. The increase is due to the full year effect of the increased debt and lower cash positions. The company look forward to 2017, expects an effective tax rate of about 28%, reflecting the fact that the international activity continues to increase and the tax benefit associated with stock options being a permanent part of the tax landscape.