Thursday, October 26, 2017

Gulfstream G500 On Time, but Early EIS Hopes Dashed


Hopes that Gulfstream might begin deliveries of its new G500 early were dashed today when Jason Aiken, the senior v-p and CFO of parent company General Dynamics, revealed that an unidentified supplier is behind on EASA approval of an unspecified component. The G500 is Gulfstream’s first aircraft to apply for simultaneous FAA/EASA certification.

However, Aiken—who filled in for flu-stricken chairman and CEO Phebe Novakovic during this morning’s General Dynamics third-quarter investor conference call—stressed that Gulfstream “will meet all contract delivery dates for the G500,” meaning shipments will begin, as originally planned, in early 2018. In previous investor calls, Novakovic expressed optimism that G500 deliveries might begin by the end of this year.

During the recent quarter, Gulfstream shipped 30 business jets (21 large-cabin and nine midsize), up one unit from a year ago (23 large-cabin, six midsize). Year-to-date, the Savannah, Georgia-based manufacturer has delivered 90 aircraft, three fewer than last year—67 large-cabin and 23 midsize versus 72 large-cabin and 21 midsize jets, respectively.

Aiken said that the sales pipeline for Gulfstreams “remains solid,” with the OEM recording a 0.9:1 book-to-bill ratio during the third quarter. Comparing consecutive third quarters, revenues at General Dynamics aerospace division soared $70 million, to $6.147 billion, in the most recent period, while profits rose $8 million, to $385 million.

(Chad Trautvetter - AINOnline News)

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