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.”