Oct. 29--General Dynamics on Wednesday reported gains in third-quarter revenues but said its earnings were hindered by a five-week production furlough at its corporate jet subsidiary.

The Falls Church, Va.-based defense contractor, however, reported strong gains in revenues and operating earnings for its Marine Systems division, which includes the Electric Boat shipyard in Groton.

Company officials expressed continued confidence in their operations -- especially the demand for defense-related products -- by boosting their forecast for full-year earnings from continuing operations to $6.15 to $6.20 a share, compared to earlier estimates of $6.05 to $6.15 a share.

General Dynamics' earnings from continuing operations, which it considers the truest measure of its operations, were $575 million, or $1.47 a share, during the July-through-September quarter, compared to earnings of $634 million, or $1.59 a share, in the year's earlier quarter.

Revenues during the third quarter were up 8.1 percent to $7.7 billion, compared to $7.1 billion in last year's comparable quarter.

The company's net profits also showed declines in the third quarter, falling to $572 million, compared to $634 million in last year's quarter.

Jay L. Johnson, General Dynamics' president and chief executive officer, said the company performed well "despite the impact of reduced aircraft production at Gulfstream Aerospace."

"Continuing customer demand for our defense-related products coupled with our commitment to financial performance and effective execution produced strong margins and cash generation in the quarter," Johnson added.

Revenues for the company's Marine Systems group -- Electric Boat in Groton, Bath Iron Works in Maine, the San Diego-based NASSCO shipbuilder and ship operator American Overseas Marine in North Quincy, Mass. -- rose 8.1 percent to $1.5 billion during this year's third quarter, while its operating earnings rose nearly 11 percent, to $155 million. Marine Systems' also boosted its operating margin to 10.1 percent during the quarter.

For the first nine months of this year, General Dynamics' revenues rose 12.3 percent to $24 billion, while its earnings from continuing operations fell 3.2 percent to $1.8 billion, or $4.60 a share. Its shares fell more than 2 percent to close the day's trading at $64.30 a share.

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