Gulfstream Reports Record 1st Quarter 1998 Results
25 Aircraft Ordered Through March 31
SAVANNAH, GA--(BUSINESS WIRE)--April 16, 1998--Gulfstream Aerospace Corporation (NYSE:GAC - news) today reported revenues of $503.4 million for the first quarter ended March 31, 1998, up
34% from revenues of $375.6 million in the 1997 first quarter. Net income for the 1998 quarter was $40.5 million, up 54% from comparable pro forma fully taxed net income of $26.3 million in the 1997
first quarter. Diluted earnings per share for the 1998 first quarter were $0.54, up 64% from comparable pro forma fully taxed diluted earnings per share of $0.33 in the 1997 first quarter.
Gulfstream delivered 13 aircraft, six Gulfstream IV-SPs and seven Gulfstream Vs, in the 1998 first quarter, compared to 11 aircraft (five GIV-SPs and six GVs) in the 1997 first quarter.
In the 1998 first quarter, Gulfstream signed contracts for 25 aircraft and added 13 of these orders to firm contract backlog, which at March 31, 1998 totaled 88 aircraft representing $2.8 billion in future revenues. The other 12 contracts in the 1998 first quarter, with a total value of approximately $335 million, are for the Middle East shares program and have not yet been included in backlog.
In the 1998 first quarter, gross margin (excluding pre-owned aircraft which generally are sold at break-even levels) was 22.1% of revenues, up from 20.0% of revenues in the 1997 first quarter. As Gulfstream continues to realize increased manufacturing efficiencies, gross margin is expected to continue
to improve.
''This was another exceptional quarter in terms of financial performance, and by far the best first quarter Gulfstream has ever had in new sign-ups, with 25 aircraft ordered through March,'' said Chairman Theodore J. Forstmann. ''Gulfstream now has a total of 100 aircraft under contract, and we are seeing continuing strong demand for both GIVs and GVs on a global basis. We are co-producing GIVs and GVs with increasing efficiency, and the Company is now well ahead of its target to increase annual production
to 60 planes by 1999.''
Founded in 1958, Gulfstream Aerospace is the leading designer, developer, manufacturer and marketer of the world's most technologically advanced intercontinental business jet aircraft. Gulfstream has produced more than 1,000 aircraft for customers around the world. The Company offers a range of aircraft products and services to meet the aviation needs of its customers, including the Gulfstream IV-SP, the
ultra-long range Gulfstream V, Gulfstream Shares(R) (fractional ownership interests), Gulfstream
Financial Services, pre-owned Gulfstream aircraft, and Gulfstream Charter Services. |
