Gulfstream Q1 2015 deliveries down 18% but profit up
Gulfstream deliveries fell by 18 per cent in the first quarter of 2015 when compared to the same period of 2014. However, the aircraft manufacturer’s profit was up 6.7 per cent with it making $431 million versus $404 million last year.
Gulfstream does not split deliveries down to individual aircraft types. The company says that they delivered 25 large cabin, and seven mid-cabin jets during the quarter.
Compared to the first quarter of 2014, large cabin deliveries were down 32 percent, whilst mid-cabin jets saw a 16 percent rise (equivalent to one aircraft).
The company classifies its G150 and G280 as mid-cabin aircraft, and the G450, G550 and G650/G650ER as large cabin.
Slots are available for a G150 being in during the first quarter of 2016, with slots for the G280 available before the end of the year.
Availability for the G450 and G550 remains fairly steady at 12 months, while the next positions for the G650 and G650ERs are in the fourth quarter of 2017.
Order intake during the quarter was described as ‘careful’ by Phebe Novakovic, General Dynamics chairman and CEO during the company’s investor relations call, although she also noted that this was was roughly in line with what Gulfstream have seen during first quarters in previous years.
Geographically the company is seeing reasonable activity in North America and the Middle East, but describes activity in China, Latin America and Russia as “Slow at the moment”.
The company also indicated that they have some concerns with order intake over the course of the next two years, although they say that they can increase G650 production to cover any potential shortfall in orders.
“Given our large 650 backlog we can, to some degree, feather in more 650s to cover potential downfalls and of course we always take cost out of that business.”