Deliveries Continue To Climb at Gulfstream

AINalerts » July 24, 2014
Revenues at Gulfstream Aerospace were down slightly in the second quarter mainly as a result of a less-favorabe mix of aircraft delivered. Though completed aircraft deliveries rose to 38, two more than in the second quarter last year, large-cabin shipments fell to 26 from 30 a year ago, while midsize deliveries rose to 12 from six. (Photo: Gulfstream Aerospace)
July 24, 2014, 2:45 PM

Though second-quarter revenues and profits dipped slightly at Gulfstream Aerospace, the Savannah, Ga.-based aircraft manufacturer still recorded a “strong” quarter, Phebe Novakovic, chairman and CEO at parent company General Dynamics, said yesterday during an investor conference call. Revenues at the aerospace division, which also includes Jet Aviation, came in at $1.995 billion during the quarter, down from $2.053 billion a year ago. Year-over-year profits slid only by $5 million, to $384 million, thanks to higher margins that were primarily the result of continuing efficiencies in G650 production.

Revenues were down mainly as a result of the mix of aircraft delivered. Though completed aircraft deliveries rose to 38, two more than in the second quarter last year, large-cabin shipments fell to 26 from 30 a year ago, while midsize deliveries rose to 12 from six. In the first six months, Gulfstream delivered 77 aircraft (59 large-cabin, 18 midsize) versus 65 (55 large-cabin, 10 midsize) in the same period last year.

The backlog at the aerospace group stood at $14.648 billion at the end of June, down approximately $300 million from late March. Novakovic said the backlog is still quite strong and that sales of large-cabin Gulfstreams–particularly the G450 and G550, which currently account for 70 percent of sales–“remain robust.”

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aventhusiast
on July 25, 2014 - 3:09pm

Overall, Gulfstream had a very mixed quarter.  The good news is that at least, it did not experience a decrease in deliveries. However, the challenge is going to be convincing potential customers to buy the G450 or G650 since its delivery trend indicates that customers want small aircraft like the G550, and not large ones.

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