Gulfstream Still Soars at General Dynamics
Third-quarter revenues at General Dynamics’ aerospace division, which includes Gulfstream Aerospace and Jet Aviation, were $1.8 billion, up 30 percent from a year ago due to more green G650 deliveries, while profits rose 20.3 percent, to $261 million.
Gulfstream “reported its best order quarter of the year” during this three-month period, thanks in large part to “several multi-aircraft deals placed by North American companies,” according to General Dynamics chairman and CEO Jay Johnson. And the fourth quarter, he said, is expected to be even stronger. Johnson also said that demand from North American operators is coming back, as are aircraft orders from Fortune 500 companies.
During the third quarter, Gulfstream delivered 34 green aircraft (28 large-cabin and six midsize jets), nine more than it did in the same period a year ago, with all but one of the gains coming from the large-cabin segment. In total this year, the Savannah, Ga.-based aircraft manufacturer plans to deliver 104 large-cabin jets (80 G450/G550s and 24 G650s) and 15 to 20 midsize jets. On the low end of this estimate, that would be 12 more aircraft than Gulfstream delivered last year.
Gulfstream’s backlog at the end of last month stood at more than $16 billion, representing five years of G650 backlog and approximately 18 months of G450 and G550 deliveries. Its book-to-bill ratio in the quarter was about 0.8:1, meaning sales didn’t quite keep pace with deliveries.