Defense: A tax change accounted for a...

Defense: A tax change accounted for a $140-million gain that helped General Dynamics Corp., St. Louis, earn $211 million in its second quarter, in contrast with a loss of $240 million a year ago, when it had a special after-tax charge of $330 million. Sales in the latest quarter were $2.4 billion, down slightly from $2.6 billion. Northrop Corp., Los Angeles, said second-quarter income rose 22% to $36.2 million as revenue slipped 6% to $1.33 billion. Northrop said the increase in earnings came despite an after-tax provision of $8.4 million for settling litigation and related issues. The revenue decline resulted from fewer deliveries of shipsets for the F/A-18 Hornet, the conclusion of Northrop’s Advanced Tactical Fighter program and lower business volume in the electronic segment. Rockwell International Corp., El Segundo, said third-quarter net income fell 12% to $151.4 million as sales slipped 5% to $3 billion. The company cited “unfavorable economic conditions that prevailed throughout the quarter” for the weaker results.