Graham Warwick/WASHINGTON DC
General Dynamics (GD) has boosted the US aerospace industry's confidence in its ability to weather an economic downturn by reporting a 15% increase in first-quarter net earnings, to $240 million, on sales of $2.7 billion. A 10% increase in earnings at Gulfstream boosted GD's Aerospace group, although sales at the business jet manufacturer slipped slightly to $712 million.
A decline in aircraft shipments hit Raytheon, which saw first-quarter sales dip to $4 billion, although income from continuing operations rose to $97 million from $80 million in the first quarter last year.
Both companies reported stronger performances from their defence businesses, with Raytheon seeing a 21% increase in income from defence electronics.
United Technologies (UTC) saw its first-quarter earnings rise almost 17% on revenues slightly up at $6.7 billion. Operating profit soared 22% at Pratt & Whitney due to a strong performance from Pratt & Whitney Canada. Operating profit at UTC's Flight Systems group was also up 22%, led by Hamilton Sundstrand and with improvement at Sikorsky.
Multi-industry companies suffered the worst effects of a slowing US economy, particularly those involved in automobile production. TRW's first-quarter sales slid almost 9% to $4.2 billion, while net earnings dropped to $55 million from $209 million a year ago. Aerospace sales slipped slightly to $265 million and operating profit to $25 million.
Textron's sales were also hit by the downturn in US vehicle production, falling almost 9% to $2.9 billion, while net income dropped almost 21% to $113 million. This disguised a strong performance by the company's aircraft sector, which saw operating profit soar almost 26% to $98 million on sales up 3% at $986 million as Cessna shipped more business jets and Bell sold more UH-1 upgrade kits.
Source: Flight International
