Gulfstream recorded its best second quarter for new aircraft sales since 2008, thanks mainly to a thriving US economy.
During an earnings call on 29 July, Phebe Novakovic, chairman and chief executive of Gulfstream's parent company General Dynamics, dismissed competitors' talk of a slumping business jet market as “speculation” and “rumour intelligence”. This was a reference to Bombardier and Dassault, which have witnessed a decline in business jet sales.
Gulfstream's orderbook grew by nearly $1 billion to more than $14 billion, with a book-to-bill ration exceeding 1:1, General Dynamics says.
“The orderbook is very robust and the sales pipeline remains steady across all models [from the midsize G150 to the ultra-long-range G650ER],” Novakovic says. Increased demand for its flagship G650 family has persuaded Gulfstream to boost production, albeit slightly, by “feathering in an extra aircraft here or there into the schedule,” Novakovic adds.
North America dominated the orderbook in the second quarter. “We saw a particularly encouraging return of Fortune 500 companies, which are now placing orders to replenish their fleets,” she says.
Altogether, Gulfstream delivered 41 business between April and June, compared with 38 during the same period last year. Large-cabin jet shipments climbed by seven units to 33, while midsize jet deliveries fell by four aircraft, to eight.
Overall, second-quarter revenues at General Dynamics’ aerospace segment – which also includes business aviation services provider Jet Aviation – rose by $263 million to more than $2.25 billion, while profits climbed by $55 million to $226 million.
Source: Flight International
