International orders accounted for more than half of Gulfstream’s 2007 earnings and contributed to a 17.3-percent increase in net sales last year, to $4.8 billion, up from $4.1 billion in 2006. Operating earnings increased 25.8 percent, from $644 million in 2006 to $810 million last year.
General Dynamics’ aerospace segment, which includes Gulfstream, saw its third-quarter earnings rise 37 percent, to $226 million, while sales climbed 21 percent, to $1.31 billion. International sales are rising and accounted for 53 percent of Gulfstream’s orders in the three-month period, a trend evident throughout the industry.
Nicholas Chabraja, chairman and CEO of General Dynamics, the parent company of Gulfstream and its General Dynamics Aviation Services cousin, said yesterday that this year’s second quarter was “the best quarter from an intake perspective that Gulfstream has ever experienced.” The Savannah, Ga.-based OEM achieved $1.2 billion in sales in the second quarter, up more than 13 percent from the same time a year ago.
Revenue at Gulfstream Aerospace increased 18.7 percent in the first quarter of this year over the first quarter of last year, operating earnings grew 19.3 percent and backlog increased 9.8 percent from the end of last year on the strength of a “robust order book,” according to Nicholas Chabraja, chairman and CEO of parent company General Dynamics. Chabraja said Gulfstream plans to deliver 82 large aircraft this year.
Revenue at Gulfstream Aerospace increased 18.7 percent in the first quarter of this year over the first quarter of last year, operating earnings grew 19.3 percent and backlog revenue increased 9.8 percent on the strength of a “very robust order book,” according to Nicholas Chabraja, chairman and CEO of parent company General Dynamics.
Responding to an increasing number of business jet orders and lengthening backlogs–a boon for manufacturers, but a bane for customers–Cessna, Gulfstream and Raytheon (see item below) are ratcheting up production. Cessna plans to deliver 240 Citations this year (some 60 more than last year) and 270 to 290 next year.
Gulfstream delivered 113 green jets last year, 27 percent more than the 89 shipped in 2005 and exceeding by 12 the previous record of 101 deliveries set in 2001. Orders also increased by about 27 percent. According to year-end figures released yesterday by Gulfstream parent General Dynamics (GD), Gulfstream last year took orders for 159 aircraft compared to 124 in 2005.
Gulfstream appears to be off to a good start in meeting its projection to deliver this year 72 or 73 “large aircraft” (G350s, G450s, G500s and G550s). According to Nicholas Chabraja, chairman and CEO of parent company General Dynamics, “We had orders for more aircraft, both in units and dollars, than we had in the year-ago quarter.” Gulfstream delivered 18 large aircraft in the first quarter compared with 14 in the same period last year.
Gulfstream delivered 54 business jets in the first half of this year versus 41 in the first half of last year, according to figures released yesterday by parent company General Dynamics.
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.
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