Gulfstream ‘Poised for Double-digit Growth in 2011’
Gulfstream Aerospace and sister company Jet Aviation “will return to growth this year,” according to Jay Johnson, chairman and CEO of parent company General Dynamics. Speaking at the Sanford C. Bernstein Decision Conference on Friday, he predicted that his company’s aerospace division will begin an “attractive growth trajectory” this year and “is poised for double-digit growth” next year, the latter due to deliveries starting for the Gulfstream G250 and G650. The aerospace group backlog was $18.5 billion at the end of the first quarter and “orders have been outpacing defaults for four consecutive quarters,” Johnson said. “Demand is still strong for large-cabin Gulfstreams, and we’re on pace to deliver 77 of them in 2010.” He said there is a “healthy order intake” for the G450 and G550, with backlog for both in the 18- to 24-month range. According to Johnson, there has been “some improvement” in the midsize business jet market as pre-owned inventory declines, “and there could be upside to the 14 planned midsize deliveries” this year. Meanwhile, Jet Aviation is experiencing “solid” growth in maintenance and “extremely” strong demand for its FBO, aircraft management and aircraft charter services, he said.