Gulfstream Parent Company Chief: What Bizjet Slump?

During a second-quarter investor call this morning, General Dynamics chairman and CEO Phebe Novakovic dismissed “speculation” and “rumor intelligence” by competitors of a slumping business jet market—a reference to Bombardier and Dassault, without specifically naming them—noting that subsidiary Gulfstream Aerospace “had its best second quarter [for new aircraft sales] since 2008.” She added that the U.S. economy is very strong, “and, not surprisingly, North American sales dominated the order book in the quarter.”

In fact, the company’s order book grew by nearly $1 billion in the quarter, to $14.02 billion, with book-to-bill exceeding 1:1. Novakovic said that demand is strong across Gulfstream’s entire product portfolio. “We also saw the return of many Fortune 500 companies, which are now placing orders to replenish their fleets,” she said. Given the increased demand, Gulfstream is talking to suppliers to boost G650 production by “feathering in” an extra airplane here or there into the schedule.

Overall, Gulfstream delivered 41 completed jets in the quarter, three more than in the year-ago period. Large-cabin jet shipments soared by seven units, to 33, while midsize jet deliveries fell by four aircraft, to eight.

Second-quarter revenues at General Dynamics’ aerospace segment, which also includes Jet Aviation, climbed by $263 million, to $2.258 billion, while profits increased by $55 million, to $226 million.