The aerospace division at General Dynamics, which includes Gulfstream and Jet Aviation, “held its own” in the first quarter, parent company chairman and CEO Nicholas Chabraja said during an investor conference call. “A noteworthy accomplishment, I think, in light of business market conditions.”
As a whole, first-quarter revenues at General Dynamics rose to $18.3 billion, up 18% from the same period last year, Chabraja reported. Profits in the quarter were $590 million versus $572 million in the same period last year.
Revenues at the aerospace unit increased by 13.8% to $1.455 billion in the first quarter, although Chabraja attributed all of that growth to the business aviation services firm, Jet Aviation, which General Dynamics acquired last year.
Gulfstream delivered 34 completed jets (18 large-cabin, 16 midsize) in the quarter, versus 36 (20 large-cabin, 16 midsize) in the same period last year, Chabrajs said. Although sales were off by about 8.5% at Gulfstream, he said things have “improved materially since February,” due to a rise in Gulfstream flying hours, a “thawing” pre-owned market and increased customer interest.
Development of the new G650 is on track, he said, adding that it will fly by year-end.