Fri, Mar 06, 2009
Will Deliver 21 Fewer Planes This Year, Built By
1,200 Fewer Workers
We can probably thank Congress for
this. General Dynamics announced this week its Gulfstream Aerospace
subsidiary will cut production of large-cabin aircraft and
green-plane deliveries this year, due to the "deterioration" of its
order backlog.
"Gulfstream Aerospace has found it necessary to cut large-cabin
aircraft production and green-aircraft deliveries from a projected
rate of 94 to 73 in 2009," reads a statement from the company.
"Gulfstream also will reduce production of its mid-size aircraft
from a projected rate of 30 to 24 aircraft this year."
The planemaker also announced it would join other aircraft
manufacturers in cutting its workforce, to the tune of 1,200
employees. Approximately 550 of those positions are contract
personnel, GD added.
The company was tactful in not assigning blame for the erosion
in Gulfstream's fortunes... but it's not very difficult to connect
the dots. Attacking the use of corporate jets by executives at
large companies -- many of them receiving money from the federal
bailout program -- has become quite fashionable on Capitol Hill in
recent months,
as ANN has reported.
"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 General Dynamics chairman
and CEO Nicholas D. Chabraja. "We regret the impact of these
actions on our employees and their families, and are doing our best
to minimize the number of workers effected."
Chabraja added that due to the problems at Gulfstream, General
Dynamics would also lower its earning guidance for 2009... from the
previously stated range of $6.70-$6.75 to a range of
$6.00-$6.10.
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