Wednesday, April 26, 2017

As Deliveries Climb, Gulfstream Bucks Industry Trend

Gulfstream delivered 30 completed business jets (23 large-cabin, seven midsize) in the first quarter, up from 28 (20 large-cabin, eight midsize) in the same period a year ago, parent company General Dynamics announced today. Thanks to the more favorable mix at Gulfstream, revenues at General Dynamics’ aerospace division, which also includes Jet Aviation, soared $293 million year-over-year, to $2.074 billion, while profits climbed $111 million, to $443 million, it said.

Even though the aerospace backlog slipped by more than $600 million from a year ago, to $12.579 billion, and book-to-bill was 0.7:1 in the quarter, General Dynamics chairman and CEO Phebe Novakovic was upbeat about sales prospects at Gulfstream. “The market has shifted back to large-cabin business jets, and we’ve seen nice demand for our products in this range,” she said. “We’ve also seen sharp increases in interest from buyers in Europe and China during the quarter.”

According to Novakovic, G650 production “will come down a touch” next year, as the company ramps up production of the G500 and G600, which are expected to enter service late this year and in late 2018, respectively. Meanwhile, she is optimistic about the aircraft completions and services businesses at both Jet Aviation and Gulfstream, saying that the completions side is “steady,” while the services business is “seeing nice growth.”

(Chad Trautvetter - AINOnline News)

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