General Dynamics raises FY EPS $7.05-$7.10 from $6.80-$6.85 Consensus is $7.21. Anticipates lower quarterly performance in Q2, flat in Q3, with a strong Q4 finish. Says expect a "particularly robust" Q2 from a free cash flow perspective, driven in part by advanced payments on international orders. Says had a more funded backlog at the end of Q1 than it has had at any time in the last three years. Says looks forward to a strong Q2, particularly in marine systems. Says of to a "very good" start in Q2 in the aerospace group. Comments made on the Q1 earnings conference call.