Gulfstream G650 Sales

This is a very interesting article from January 30, 2010

While Gulfstream Aerospace earnings for calendar year 2009 were down significantly from a year ago, its parent company was optimistic the business jet manufacturer will begin to rebound in 2010.

"Our aerospace sector finished an exceedingly difficult year with a solid fourth quarter," said Jay Johnson, CEO of General Dynamics.

"We're seeing continued strength in order activity as well as substantially fewer customer defaults and improved service volume," Johnson told analysts in a conference call this week.

Although Gulfstream sales and operating earnings were down for the fourth quarter as compared with the fourth quarter 2008, they were up compared with the third quarter 2009.

"Gulfstream's proactive approach to managing production and internally driven cost-cutting initiatives protected profitability in an unpredictable and decidedly difficult market," Johnson said.

Sales for 2009 totaled $5.2 billion, down 6.2 percent, due primarily to a 15 percent reduction in the company's services business and fewer green aircraft delivered, Johnson told analysts.

A green aircraft is one that has completed the initial phase of manufacturing and has received a certificate of airworthiness from the Federal Aviation Administration. It's called "green" because it's actually painted with a green protective coating that is washed off before the aircraft gets its final coat of paint.

While last year's recession hurt sales of business jets, orders for new aircraft picked up in recent months, Johnson said, adding all indications point to market improvement in 2010.

"Orders are outpacing deliveries in the fourth quarter, and our backlog now stands at $19.3 billion."

Of those orders, 60 percent are international, with "a great diversity in customer mix," Johnson said.

"Our large-cabin backlog is sold out for 2010 and about three-quarters sold in 2011, with a solid start on 2012," he said.

Flight testing of Gulfstream's new flagship jet, the G650, is on track, with "no speed bumps," Johnson said.

"Our 650 backlog remains robust, with nearly 200 in the queue," he said.