Gulfstream Bizjet Shipments Soar

Business jet deliveries at Gulfstream Aerospace climbed 25 percent in the year's first half, with large-cabin shipments solely driving this increase, parent company General Dynamics announced recently. In the first six months, the Savannah, Georgia aircraft manufacturer handed over 50 large-cabin jets, up from 37 a year ago, while midsize jet deliveries remained flat at 15 units.

First-half revenues at General Dynamics’ aerospace division, which includes both Gulfstream and Jet Aviation, rose 17.3 percent year-over-year, to $4.332 billion, though earnings fell $73 million, to $659 million, as an increase in preowned transactions—five in first-half 2019 versus two during the same period last year—eroded margins, the company said. However, this surge in preowned sales has prompted General Dynamics to marginally inflate full-year aerospace revenue and earnings guidance to $9.95 billion and $1.525 billion, respectively.

Aerospace book-to-bill in the period was 1.23:1, with General Dynamics chairman and CEO Phebe Novakovic noting “robust order activity” in the second quarter and “solid demand” across the in-production Gulfstream product line. Backlog for the segment ended the second quarter at $12.145 billion—roughly flat from both three and 12 months earlier.

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