General Dynamics 2013 Annual Report Download - page 8

multi-year project that established a purpose-built G650 manufacturing
facility, increased aircraft-service capacity, improved the group’s customer
sales and design center and created a state-of-the-art paint facility.
Gulfstream offers an extensive company-owned product support
organization with service professionals located around the globe. The
service network for Gulfstream aircraft continues to evolve to address
the demands of the growing international customer base. We operate
10 company-owned service centers, maintain 14 authorized warranty
centers and maintenance facilities on six continents, and offer on-call
Gulfstream aircraft technicians ready to deploy for urgent customer-
service requirements in the Americas. This commitment to superior
product support continues to receive industry recognition, including the
number-one ranking for the 11th consecutive year in the annual
Aviation International News Product Support Survey, as well as the top
ranking in the annual Professional Pilot Survey.
Jet Aviation augments our Aerospace portfolio by providing custom,
complex completions of single- and double-aisle aircraft that require
advanced engineering, design and manufacturing capabilities. Jet
Aviation also provides completions for business-jet customers. In
addition, Jet Aviation provides superior maintenance, repair, aircraft
management and FBO services to a broad global customer base. We
operate more than 25 facilities worldwide and continue to enhance our
service network and capabilities.
A market leader in the business-aviation industry, the Aerospace
group remains focused on developing innovative first-to-market
technologies and products; providing exemplary and timely service to
customers globally; and driving efficiencies and reducing costs in the
aircraft production, outfitting and service processes.
Revenues for the Aerospace group were 19 percent of our
consolidated revenues in 2011, 22 percent in 2012 and 26 percent in
2013. Revenues by major products and services were as follows:
Year Ended December 31 2011 2012 2013
Aircraft manufacturing, outfitting
and completions $ 4,400 $ 5,317 $ 6,378
Aircraft services 1,521 1,491 1,530
Pre-owned aircraft 77 104 210
Total Aerospace $ 5,998 $ 6,912 $ 8,118
COMBAT SYSTEMS
Our Combat Systems group is a global leader in systems engineering,
spanning design, development, manufacture and support of tracked
and wheeled military vehicles, weapons systems and munitions for the
United States and its allies. The group’s product lines include:
•wheeled combat and tactical vehicles,
•main battle tanks and tracked combat vehicles,
•munitions and armaments,
•axle and drivetrain components and aftermarket parts, and
•support and sustainment services.
We have a mature and diverse portfolio of franchise products that
deliver core capabilities to domestic and international customers. We
pursue continuous process improvements and other cost-reduction
initiatives to improve our productivity and operating performance. We
apply our design and engineering expertise to develop improvements that
advance the utility, safety and effectiveness of our products.
The portfolio of platforms in our U.S. military vehicles business
includes the Stryker wheeled combat vehicle, the Abrams main battle
tank and the Buffalo route clearance vehicle. These vehicles are
fundamental to military warfighting capabilities and offer continuing
opportunities for upgrades and modernization to meet evolving
requirements.
The Stryker has proven itself a versatile combat vehicle, supporting
numerous missions for more than 10 years. The group developed a
double-V-hulled Stryker to further improve soldier protection from
improvised explosive devices (IEDs). Nearly 780 double-V-hulled vehicles
representing two Stryker brigades have been delivered to the U.S. Army
since 2011. In late 2013, the group received a contract to field the first
96 of 341 vehicles in a third Stryker brigade by 2017.
We continue to support the Army’s evolving needs for main battle
tanks with technology upgrades to the Abrams, such as the System
Enhancement Package (SEP), which provides a digital platform with an
enhanced command-and-control system, second-generation thermal
sights and improved armor. In September 2013, we conducted a
preliminary design review with the Army under a five-year development
contract that provides opportunities for fleet-wide vehicle modernization.
The group’s portfolio of tactical vehicles is at the forefront of blast-
and ballistic-protected technologies, designed to protect vehicle
occupants from landmines, hostile fire and IEDs. The Buffalo vehicle is a
recognized leader in route clearance missions and has been fielded to
several North American and European countries. We have delivered
approximately 5,600 RG-31 and Cougar vehicles to the U.S. military
under the Mine-Resistant, Ambush Protected (MRAP) vehicle program.
This installed base has led to subsequent modernization programs, as
well as support and sustainment services. Further, the group entered the
light mobility vehicle market with two key U.S. Special Operations
Command vehicle awards in 2013 for the Ground Mobility Vehicle (GMV)
and the Internally-Transportable Vehicle (ITV) programs.
Beyond these long-term programs, we have opportunities associated
with the refurbishment of battle-damaged vehicles and the replacement of
equipment that has reached the end of its service life. As the sole provider
of Abrams tanks and Stryker and Buffalo vehicles, Combat Systems is the
primary contractor for the maintenance, repair and reset of these vehicles.
4 General Dynamics Annual Report 2013