General Dynamics Corp. has been awarded a contract by the U.S. Department of Health & Human Services' Centers for Medicare & Medicaid Services (CMS) to support the Beneficiary Eligibility Suite of Systems Transactions program. The BESST systems maintain Medicare beneficiary eligibility information and support critical components of CMS's core healthcare mission. This contract has a potential value of $19.9 million over five years. Under this contract, General Dynamics will help maintain and enhance BESST systems. The company will create and maintain critical links between new and existing CMS systems as well as implement software enhancements. Additionally, General Dynamics' experts will provide program management, documentation and training services and support special projects for the HIPAA Eligibility Transaction System.

General Dynamics Corp. announced unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported operating earnings of $847 million, earnings before income taxes of $824 million and net earnings of $571 million or $1.62 per diluted share on revenues of $7,404 million compared to operating earnings of $860 million, earnings before income taxes of $821 million, and net earnings of $564 million or $1.57 per diluted share on revenues of $7,579 million reported in the same period last year. Net cash provided by operating activities was $504 million against $414 million and capital expenditures were $75 million against $90 million reported last year. Free cash flow from operations was $429 million against $324 million a year ago. Debt-to-equity was 33.8% against 28.2% reported last year. Book value per share was $32.79 against $38.44 reported last year.

General Dynamics Corp. is laying off more than 100 workers at its gun manufacturing plant in Saco. 110 workers representing nearly a third of the plant's workforce have been notified that they'll be let go between June 14, 2013 and July 1, 2013. 100 of the laid-off employees are hourly workers. the layoffs are necessary because of a sharp reduction in the Army's demand for heavy machine guns and grenade launchers, brought on by the drawdown in U.S. forces in Iraq and Afghanistan.