Gulfstream Shines in General Dynamics’ 1H Earnings

 - July 26, 2012, 4:10 PM
Gulfstream expects certification of its flagship G650 in the third quarter, the company said during its second-quarter earnings call.

With sales of $1.6 billion, up 16 percent from the same period last year, General Dynamics’ aerospace group was a bright spot in the company’s second-quarter 2012 financial report, released yesterday morning. At Gulfstream, in the first half of the year, the large-cabin market made up 60 percent of the order book, “reflecting the return of some of our North American customers and some cooling of international demand, particularly in Asia,” said General Dynamics CEO Jay Johnson.

While the backlog has declined slightly to a value of about $16.3 billion, it remains healthy enough to keep the Savannah, Ga.-based OEM in an 18- to 24-month delivery window for the G450 and G550 and a five-year window for the G650.

For the remainder of the year, Johnson expects aerospace sales to grow 15 percent as mid- and large-cabin production combined remains on track at just over 100 green deliveries.

According to the airframer, certification of the G650 is expected in the third quarter of this year, followed by delivery of approximately 17 of the completed ultra-long-range aircraft in the fourth quarter.

Certification of the super-midsize G280 is still slated for “the second half of 2012.”