DBEA55AED16C0C92252A6554BC1553B2 Clicky DBEA55AED16C0C92252A6554BC1553B2 Clicky
April 18, 2024
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General Dynamics reported increased earnings in the fourth quarter. They saw growth across its businesses. The company even noted its backlog is at record levels.  But the G700 program saw a delay in achieving FAA certification This hurt the quarterly results and cost General Dynamics $1Bn in revenues.

We had a solid fourth quarter, capping off a year that saw growth in all four segments and continued strong cash flow,” said Phebe Novakovic, chairman and CEO of General Dynamics.

The FAA certification delay means 15 deliveries that were planned for did not occur.  Is this trickle down from the MAX? It appears so.   The Rolls-Royce Pearl engines received FAA certification in September. Gulfstream also announced that it raised the G700’s maximum range to 7,750NM at Mach 0.85. Maximum speed was raised to 0.935M from 0.925M. The G700 undertook a world tour late last year.

For the year Gulfstream delivered 111 aircraft: 89 large-cabin and 22 super-midsize.  This is down 7.5% from 120 (96 plus 24) from last year. Had the G700 certification been approved, deliveries would have been +5%.

Novakovic said: “We have 15 airplanes ready to go, and the hope is that we deliver them this quarter,” and noted that the book-to-bill ratio was 1.2:1 last year.

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Co-Founder AirInsight. My previous life includes stints at Shell South Africa, CIC Research, and PA Consulting. Got bitten by the aviation bug and ended up an Avgeek. Then the data bug got me, making me a curious Avgeek seeking data-driven logic. Also, I appreciate conversations with smart people from whom I learn so much. Summary: I am very fortunate to work with and converse with great people.

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