Gulfstream Deliveries, Sales Soar in First Quarter
Business jet deliveries at Gulfstream Aerospace climbed nearly 31 percent year-over-year in the first quarter, largely due to G500 shipments, parent company General Dynamics reported today. The 34 deliveries in the quarter included 27 large-cabin and seven midsize jets, compared with 26 (19 large-cabin, seven midsize) in the same period a year ago. Seven G500s were handed over to customers in the quarter, with 17 in total delivered since the new large-cabin jet received FAA certification in July.
During an investor call this morning, General Dynamics chairman and CEO Phebe Novakovic said order intake for Gulfstreams was “very strong” during the quarter and even outpaced deliveries, resulting in a nearly 1.5:1 book-to-bill ratio. “Backlog for the G650, G500, and G600 all increased in the quarter,” she said. “We’ve seen solid, but not overheated, demand for Gulfstream jets. We have a family of all-new, clean-sheet aircraft that is compelling to buyers.”
Aerospace backlog stood at $12.168 billion on March 30, up from $11.375 billion at the end of last year. First-quarter revenues for the aerospace division, which also includes Jet Aviation, soared 22.7 percent from a year ago, to $2.240 billion thanks to higher Gulfstream deliveries and increased aircraft maintenance business. Earnings, however, fell $18 million from last year, to $328 million.
Meanwhile, Novakovic said the G600 is expected to get FAA approval by the end of June, with deliveries “on track” to start in the second half of the year.