3Q13 Revenues, Jet Deliveries Climb at Gulfstream

 - October 23, 2013, 7:00 PM

Gulfstream Aerospace’s deliveries of completed aircraft more than doubled to 38 aircraft (32 large-cabin and six midsize jets) in the third quarter versus 17 large-cabin jets in the same period a year ago, parent company General Dynamics said during its quarterly investor conference call this morning. In the first nine months, Gulfstream shipped 103 outfitted airplanes (87 large cabin, 16 midsize), a nearly 81-percent rise from the 57 aircraft (52 large cabin, five midsize) handed over to customers in the same period last year.

Third-quarter revenues at General Dynamics’ aerospace unit, which includes both Gulfstream and Jet Aviation, jumped 17.2 percent year-over-year to $2.152 billion, while profits soared 41.4 percent to $369 million. “This was a better than expected quarter for aerospace,” General Dynamics chairman and CEO Phebe Novakovic said. “It was the highest-ever quarterly revenues to date for this division.”

Though book-to-bill was only 0.6:1 in the third quarter, Novakovic said that Gulfstream sales year-to-date are up 10 percent year-over-year. “The third quarter started out strong for sales, but contracts took longer than expected to execute,” she noted, adding that customers have been spooked by the U.S. government flirting with “the abyss” of default. “What we need is stability from the government on the debt ceiling,” Novakovic said. “This squabble worried both domestic and international customers.”