During a second-quarter investor call this morning, General Dynamics chairman and CEO Phebe Novakovic dismissed âspeculationâ and ârumor intelligenceâ by competitors of a slumping business jet marketâa reference to Bombardier and Dassault, without specifically naming themânoting that subsidiary Gulfstream Aerospace âhad its best second quarter [for new aircraft sales] since 2008.â She added that the U.S. economy is very strong, âand, not surprisingly, North American sales dominated the order book in the quarter.â
In fact, the companyâs 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 Gulfstreamâs entire product portfolio. âWe also saw the return of many Fortune 500 companies, which are now placing orders to replenish their fleets,â she said. Given the increased demand, Gulfstream is talking to suppliers to boost G650 production by âfeathering inâ 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 Dynamicsâ aerospace segment, which also includes Jet Aviation, climbed by $263 million, to $2.258 billion, while profits increased by $55 million, to $226 million.