Large-cabin Gulfstreams Sold Out in 2010

 - October 29, 2009, 11:07 AM

Gulfstream “held its own again in the third quarter” despite a planned five-week plant shutdown, Jay Johnson, the president and CEO of parent company General Dynamics, said yesterday during a third-quarter investor call. Due to the shutdown, Gulfstream delivered 14 green large-cabin jets in the quarter versus 24 a year ago; it also delivered only three green midsize jets in the three-month period compared with 16 last year. However, Gulfstream still plans to deliver 73 large-cabin aircraft this year–down from the 87 it shipped in 2008–and in the “low 70s” next year, though midsize production could be reduced further in 2010 since this segment remains “unsettled,” Johnson said. Gulfstream’s backlog currently stands at more than $19 billion and, while down $3 billion from last year, he said large-cabin production is sold out in 2010, as well as much of 2011 and 2012. According to Johnson, the business jet market has stabilized and “Gulfstream [will] be ever stronger quarter by quarter.” He further noted that demand for large-cabin Gulfstreams–especially from international customers–improved steadily through this year. Johnson said the current order intake is 60-percent international, with Asia Pacific and Europe taking the lead.