Gulfstream to increase production after ‘red hot’ Q4
Gulfstream is “ready to increase” aircraft production following a “red hot” fourth quarter (Q4) 2021, according to General Dynamics, chairman and CEO, Phebe Novakovic.
“The most important story in the quarter for Aerospace and frankly for the company was the extraordinary order activity of Gulfstream. Last quarter, I told you that orders in the third quarter boarded on the spectacular. This quarter, they were significantly better,” said Novakovic in an investor’s briefing last week.
Order activity in the quarter was beyond anything the firm had seen since 2008, when it introduced the G650. Demand “turned very good” in mid-February and continued through the second and third quarters and became “red hot” in fourth quarter.
Backlog grew in the quarter to $16.3bn, up 40% from the Q4 2020, driven by the strongest order-year for Gulfstream since 2008. “Aerospace added $1.6bn to backlog in the quarter and $4.7bn for the year,” said Novakovic. Book-to-bill was 1.7:1 for the quarter and 1.6:1 for the year.
To ensure the firm can cope with continued demand, Gulfstream is expanding its manufacturing capabilities, according to Novakovic. “As it turns out, the long pole in the tent is manufacturing wings, which we do ourselves. We need to expand our new modern wing facility and acquire another set of tools and fixtures. All of this is underway and will be in place to satisfy our needs for 2023 and beyond.”
In 2019, Gulfstream opened a 290,000sqft production facility dedicated to wing and tail manufacture at its Savannah headquarters