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General Dynamics reduces production goals for 2009

General Dynamics Corp., the second largest maker of private jets by sales, announced that 2009 profits will be lower than previously forecasted due to declining demand. Because of this, the company will reduce the output of Gulfstream aircrafts and cut 1,500 jobs. 

General Dynamics says that the growing backlog along with weakening demand have prompted a deduction in production goals for the year.

“Conditions in the overall economy, not only in the U.S. but on a global scale, are hurting demand for business jets,” said Eric Hugel, an analyst from Stephens Inc. “Up until now it has been contained in the small end of the business jet market. This is the first sign the contagion has spread to the high end.” 

The company will release more details about the Gulfstream backlog on their next financial report due next month.