Gulfstream Gives Lift to General Dynamics’ Profits
General Dynamics, the parent company of Gulfstream and Jet Aviation, yesterday reported revenue of $32.47 billion and pre-tax earnings of $2.63 billion last year, up from $31.981 billion and $2.41 billion, respectively, in 2009. The company’s aerospace segment accounted for $5.3 billion in revenue and $860 million in profits last year, the latter up 21 percent over 2009. GD’s total order backlog was $59.6 billion at year-end, boosted by $244 million in aircraft sales at Gulfstream during the fourth quarter. “This was the largest order intake at Gulfstream in any quarter since the third quarter of 2008,” noted GD chairman and CEO Jay Johnson. “The business jet market improved in the fourth quarter…and orders outpaced deliveries and defaults. Gulfstream had a book-to-bill ratio of 1.5:1 in the quarter.” Last year, Gulfstream delivered 99 green business jets, comprising 75 large-cabin aircraft and 24 midsize jets. This compares to 94 deliveries in 2009�75 large-cabin and 19 midsize. For 2011, Johnson expects Gulfstream to deliver 90 green large-cabin jets, “including about a dozen G650s,” and 15 to 20 midsize jets, of which “several” will be G250s. The midsize G250 and wide-cabin G650 are both slated to be certified later this year. Johnson expects 2011 sales at Gulfstream to climb by 15 to 16 percent over last year.