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Gulfstream Flying High at General Dynamics
Revenues at General Dynamics’ aerospace division, which includes Gulfstream Aerospace and Jet Aviation, soared to $6.91 billion last year, up more than $900 million from 2011, thanks in large part to Gulfstream. Profits at the division climbed by $129 million to $858 million. During an investor conference call yesterday, General Dynamics chairman and CEO Phebe Novakovic forecast that the division will see 16-percent sales growth this year.
“At Gulfstream, both revenue and earnings were strong, with revenue up more than $800 million and earnings up $110 million,” she said. Last year, Gulfstream delivered 121 green aircraft (104 large-cabin and 17 midsize jets) versus 107 (90 large-cabin, 17 midsize) in 2011. Novakovic said that the aircraft manufacturer expects to deliver 139 green aircraft this year (113 large-cabin and 26 midsize jets).
However, deliveries of completed aircraft fell from 99 in 2011 to 94 last year. This suggests a bottleneck in the completions pipeline, and Novakovic acknowledged that rework to bring in-completions G650s up to final FAA specifications has slowed deliveries of these wide-cabin jets.
Though the aerospace division’s backlog shrunk by more than $2 billion last year, ending at $15.67 billion on December 31, Novakovic is encouraged by sales so far this year. Notably, she said that Fortune 500 companies are again in a mood to buy aircraft, looking to replenish their fleets.