Story ID: 
Gulfstream Jet Deliveries Find Bottom in 2016
By: Chad Trautvetter
Caption: This year is expected to be mostly flat, with moderate growth in 2018 and 2019 and a “significant” rise in 2020.
Word Count: 233
Revenues at General Dynamics’s aerospace division, which includes Jet Aviation and Gulfstream Aerospace, fell 5.5 percent last year, to $8.362 billion, but earnings increased to $1.718 billion, up 0.7 percent from 2015. According to General Dynamics CFO Jason Aiken, revenues and earnings at the division are expected to climb at a compound annual growth rate of 5.3 percent and 5.8 percent, respectively, from now until 2021. This year is expected to be mostly flat, he said, with moderate growth in 2018 and 2019 and a “significant” rise in 2020.

Gulfstream delivered 115 outfitted aircraft last year, 88 large-cabin and 27 midsize jets, down from 154 (120 large and 34 midsize) in 2015. The delivery outlook for this year is 90 to 95 large-cabin and 25 to 30 midsize Gulfstreams, Aiken said. The former is expected to include an unspecified number of outfitted G500s in the fourth quarter, he added.

Meanwhile, Gulfstream had “good order intake” last year, especially in the second half, Aiken noted, with that trend continuing into this year. Interest in the G500 and G600 is also ramping up as these new jets get closer to entry into service. Backlog for the G650/650ER is 24 months and the G550 is 12 months. Only one slot remains to be sold for the G450 before production of this legacy model ends early next year, according to Aiken. Total backlog at the aerospace division was just shy of $11 billion at year-end 2016, down from $11.5 billion at the end of September.