Gulfstream’s deliveries dropped in the first quarter (Q1) of this year to 21 aircraft delivered, compared with the 25 jets it delivered in Q1 2022.
The company’s midsize jet deliveries remained level with last year, having delivered four in both Q1 2023 and Q1 2022, but it delivered only 17 large cabin jets compared with the 21 this time last year, according to parent company General Dynamics’ (GD) financial results.
The drop in deliveries was due to supply chain disruptions which also impacted on manufacturing efficiency, according to GE. Its book-to-bill ratio was 0.9:1 for the quarter.
Revenue for the aerospace division, which also includes services provider Jet Aviation, decreased from $1.9bn in Q1 last year to $1.89bn, with operating earnings also dropping from $243m to $229m.
GD’s backlog for its aerospace division rose from $17.6bn in Q1 last year to $19.3bn, with the total estimated contract value increasing to $20.1bn, up from $19.4bn.
“Aerospace held its own in a very difficult operating environment,” said Phebe Novakovic, chairwoman and CEO, GD. “Importantly, this is the first quarter in which we have missed an airplane delivery as a result of supply chain issues.”
In an investors call, Novakovic said the company expects supply chain issues to be resolved in the final half of the year
She added that certification of the G700 is still expected to happen in late summer this year.
GD Aerospace Q1 financial results – at a glance
- Revenue down to $1.9bn
- Operating earnings down to $229m
- Operating margin 12.1%
- Backlog up to $19.3bn
- Estimated backlog value up to $20.1bn
