Gulfstream Deliveries Down
New aircraft deliveries by Gulfstream Aerospace were off significantly in the third quarter, but officials expressed optimism that the Savannah, Ga., business jet manufacturer will report improved results for the fourth quarter. The latest figures show the company is not immune to the economic downturn that also is affecting other business jet providers. In addition to lower revenues because of reduced volume, Gulfstream reported a loss on used-aircraft sales and wrote down the value of its used-aircraft inventory. The company lost $10 million on the sale of nine aircraft during the quarter. In addition, Gulfstream took a write-off of $25 million on its remaining used-aircraft inventory to more closely reflect market prices. Gulfstream currently has 18 used aircraft for sale, five of which are under contract. Gulfstream traditionally runs close to break-even in its used aircraft sales.
Gulfstream delivered 17 new "green" aircraft during the third quarter, down seven from the same period a year ago. The company also delivered 19 completed aircraft, down five from the number handed over to customers in the third quarter of 2001. As for 2003, officials expect total deliveries to be similar to this year in number of units, although the mix of models might change somewhat with a pickup in deliveries of ultra-long-range aircraft, a modest decline in 400-Series airplanes, fewer G200 deliveries, and about the same number of G100s. For the remainder of 2002, Gulfstream has few G-IVs and G-Vs left to sell. Gulfstream's objective in the fourth quarter will be to sell more G200s.