Gulfstream Aerospace delivered 55 jets during the first half of 2020 compared with 65 deliveries in the same period last year. Phebe N. Novakovic, CEO, of parent company General Dynamics said the organisation, as a whole, is focused on aggressive cost management, performance and cash conversion due to Covid-19, following publication of second quarter (Q2) 2020 net results yesterday (July 29th).
Focusing on business jets, Gulfstream delivered 32 aircraft during the Q2 2020, up from 23 during the same quarter of last year. That was despite what the company has called continued pandemic-related challenges to making international deliveries.
The reduction in deliveries in the first half of 2020 compared with the same period last year is 10. In the first half of 2019, Gulfstream delivered 65 jets (50 large-cabin and 15 mid-cabin) compared to 55 jets (46 large and 9 mid-cabin) in 2020 so far. The company says its large-cabin jets typically perform better and this is reflected in the lesser reduction in large cabin deliveries, only a 16.5% reduction compared with 40% in the mid-cabin section.
The total Aerospace backlog, including Gulfstream and Jet Aviation, is $12.1b.
“We have continued to operate throughout the Covid-19 pandemic, meeting our customers’ needs while keeping our people as safe as possible,” said Novakovic. “We are focused on the basics of early and aggressive cost management, performance and cash conversion as we manage through this period.”
General Dynamics reported second-quarter 2020 net earnings of $625m on revenue of $9.3bn. Diluted earnings per share (EPS) were $2.18b. Net cash provided by operating activities in the quarter totalled $843m, $552m better than the same period of last year. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $622m, 100% of net earnings. The company ended the quarter with $2.3bn of cash on hand, $1.6bn more than at the end of second-quarter 2019.