2Q17 Deliveries Down, but Sales Steady, at Gulfstream

Deliveries at Gulfstream fell 17 percent in the second quarter from a year ago, but Phebe Novakovic, chairman and CEO of parent company General Dynamics, said today during an investor conference call that she expects overall shipments at the Savannah, Georgia-based business jet manufacturer to be on par with last year, when it delivered 115 aircraft (88 large-cabin and 27 midsize jets).

During the quarter, Gulfstream delivered 30 jets (23 large and seven midsize) versus 36 in the same period last year (29 large and seven midsize). In the first six months, it has shipped 60 airplanes (46 large and 14 midsize), compared with 64 (49 large, 15 midsize) in the first half of last year.

Novakovic said that Gulfstream has seen “steady demand” for its airplanes, recording a 0.9:1 book-to-bill ratio in the second quarter. Notably, she said, “In this quarter, we had the highest number of orders that we’ve seen in the last six quarters for the G650/650ER.” The G650/650ER, as well as the G550, built backlog during the quarter, she added.

Second-quarter revenues at General Dynamics’ aerospace division, which also includes Gulfstream sister company Jet Aviation, were down $206 million year-over-year, to $2.078 billion. However, comparative earnings increased by $1 million, to $425 million, thanks to a “more advantageous mix.”

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