Gulfstream Continues Growth Pattern
Although many aviation companies are suffering from five years of depressed markets, Gulfstream is reporting solid financial results on the strength of some popular new designs. At a news conference at NBAA 2013 in Las Vegas, the company reported revenues of $3.83 billion in the first half of 2013 (up 19 percent over 2012) and earnings of $699 million (up 32 percent). The company has added 1,700 employees to its Savannah operations, opened a base in China and added service and parts facilities in the U.S. and Asia. Much of the recent success can be attributed to the entry to service of the G650 and G280.
Gulfstream is building G650s as fast as it can but the $65.5 million aircraft, which is backlogged to 2017, is a hefty part of the total backlog of $14.7 billion currently on the books. As AVweb reported earlier this week, the G650 is so popular that early deliveries are being resold for a 10 percent premium. A used G650 recently sold for about $7 million over the sticker price and a query about that deal drew some knowing smirks from the Gulfstream executives at the news conference. Scott Neal, head of Gulfstream sales, said that if the report is true the transaction "set a record for residual value in a business aircraft. It is very much in demand."