40533--2/23/2007--GENERAL_DYNAMICS_CORP

related topics
{regulation, government, change}
{customer, product, revenue}
{operation, international, foreign}
{product, liability, claim}
{personnel, key, retain}
The company depends on the U.S. government for a significant portion of its sales. U.S. government contracts generally are not fully funded at inception and are subject to termination. The Aerospace group is subject to changing customer demand for business aircraft. The company s earnings and margins depend on its ability to perform under its contracts. The company s earnings and margins depend in part on subcontractor performance, as well as raw material and component availability and pricing. International sales and operations are subject to greater risks that sometimes are associated with doing business in foreign countries. The company s future success will depend, in part, on its ability to develop new technologies and maintain a qualified work-force to meet the needs of its customers. Developing new technologies entails significant risks and uncertainties that may not be covered by indemnity or insurance.

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