General Dynamics, the parent company of Gulfstream Aerospace, says that, because of deterioration in the Gulfstream backlog, particularly during the month of February, Gulfstream has cut large-cabin aircraft production and green-aircraft deliveries from 94 to 73 for 2009. Gulfstream is trimming midsize aircraft production as well from 30 to 24 aircraft this year.
This action will result in a reduction in force of 1,200 workers, including approximately 550 contract personnel. “Despite the current challenges, we continue to believe that Gulfstream’s backlog provides a solid foundation for the business in this tough market environment,” said Nicholas D. Chabraja, chairman and chief executive officer of General Dynamics.
General Dynamics also said it is reducing its forecast earnings per share in 2009 by 70 cents to about $6 per share.