Gulfstream: General Dynamics’ Shining Star

 - October 31, 2006, 11:04 AM

Reporting on first-quarter results, General Dynamics (GD) singled out Gulfstream for “superb performance.” According to GD chairman and CEO Nicholas Chabraja, the Savannah, Ga.-based OEM had significant growth in virtually every segment: sales, deliveries, earnings, revenue, margins and backlog. “I think our disciplined approach to cost controls and productivity continues to pay extraordinary dividends,” Chabraja said. Gulfstream’s performance was “particularly impressive” in light of what he described as a “disadvantageous product mix.” While the company delivered 20 aircraft in the first quarter compared with 17 in the first quarter last year, 11 of those 20 aircraft were “lower-margin” models (G100, G200, G350 and G500) compared with five lower-margin models delivered last year.