The Nordam nacelle issue “hampered” G500 deliveries and order intake for this model and its G600 sibling during the third quarter at Gulfstream, Phebe Novakovic, chairman and CEO of parent company General Dynamics, said this morning during an investor conference call. This issue “is now behind us…and customers have been comforted” by Gulfstream’s acquisition of the nacelle manufacturing line.
While Gulfstream restarted the nacelle production line last month and has started deliveries to Pratt & Whitney Canada for the G500’s and G600’s PW814GA and PW815GA engines, respectively, Novakovic said it is not yet at full capacity. There will be enough nacelles produced to support eight to 10 G500 deliveries in the fourth quarter—"Fewer than anticipated," she lamented. The company handed over the first G500 late last month.
Overall, Gulfstream delivered 27 aircraft in the quarter, down three units as large-cabin jet shipments remained flat year-over-year at 21 and midsize jet shipments fell by three, to six. Year-to-date, Gulfstream has handed over 79 aircraft (58 large-cabin, 21 midsize) versus 90 (67 large-cabin, 23 midsize) in the same period last year.
Third-quarter revenues at General Dynamics’ aerospace division, which also includes Jet Aviation, fell 6.3 percent from a year ago, to $5.75 billion, while earnings slid 10.7 percent, to about $1.11 billion.
