On July 27, 2016 the General Dynamics corporation has reported for the second quarter of the current year. The aviation division of corporation includes the producer of business jets of Gulfstream Aerospace and provider of services of business aircraft Jet Aviation.
General Dynamics reports that in the second quarter 2016 the total sales have made $7,665 billion while the previous year the income was 2,8% more – $7,882 billion. The operating profit of corporation for this period has decreased in comparison with the same period of 2015 by 1,0% to $1,07 billion. At the same time the net profit has grown by 0,8%, to $758 million or $2,44 for one action, in comparison with profit in $752 million or $2,27 for an action for the same period of 2015.
By results of work in the second quarter 2015 the aviation segment of corporation which Gulfstream Aerospace and Jet Aviation enter has received revenue of $2,134 billion that for $124 million it is less (-5,5%), than in 2015. The operating profit has also dropped by $5 million and has made $434 million (-1,1%). As a result, quarter profitability of division has made 20,5% (in the second quarter 2015 this parameter was at the level of 19,9%) while the general profitability of General Dynamics in the second quarter 2016 equaled 13,8%.
For the end of the second quarter 2016 the total amount of a stock of orders of aviation division of General Dynamics has made $11,755 billion. This indicator is less, than for the end of the first quarter 2016 ($12,612 billion) and it is much less than the previous year ($14,017 billion).
According to the chairman and the CEO of General Dynamics Feby Novakovich (Phebe Novakovic), for Gulfstream the second quarter is celebrated by lower demand, partly because of the neopredelennost connected with crisis of Brexit in Europe and a creeping failure from G450 and G550 in favor of new G500 and G600. But from the point of view of Novakovich this situation is still far from hypothetically unsatisfactory quarter.
“In the first half of the year 2016 the revenue of division of Aerospace has made $4,12 billion and was for $245 million less in comparison with last year that reflects the planned reduction in production of G450 and G550 which is partially compensated by increase in deliveries of G650”, – she has told. “To put it briefly, with operating profit in the first half of the year of the current year of $845 million we are quite capable to reach or exceed our purposes in 2016”.
In the second quarter of Gulfstream has received 50% more orders in comparison with the first quarter, but the structure of orders was not so favorable as the company has sold more average airplanes.
“Activity of customers and level of interest during the whole quarter were good”, – the head of General Dynamics has told. “Nevertheless at the end of the quarter when many transactions, as a rule, already are in a closing stage, as a result of uncertainty after the decision of the British voters activity practically has stopped leaving the European Union. Fortunately, these clients have not left and continue to work with us current quarter. We expect the good third quarter and all second half of year from the point of view of orders”.
“Looking at the market of the Gulfstream company in general it is possible to claim that interest in G650 is still quite high, at the same time demand is also on new G500 and G600. Slots on G650 in 2017 all are sold while deliveries of G500 and G600 are generally distributed for 2017 and 2018 respectively”, – Novakovich has told.
About 50% of orders of the Gulfstream company fall on North America. At the same time, by words Novakovich, the company sees the minimum influence of the secondary market G650 on sales of new airplanes and only the few clients choose a second-hand leader.
Production of the Gulfstream airplanes in the second quarter and the first half of the year 2016.
|.||Second quarter||Six months|
|The equipped airplanes|
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