Sales Down, After-tax Income Up at Hawker Beech
Hawker Beechcraft this morning reported $537.6 million in net sales in the first quarter, a decrease of $38.9 million from the year-ago time frame, but net after-tax income increased to $66.9 million, compared with a net after-tax loss of $31.3 million in the first three months of last year. However, the Wichita-based aircraft manufacturer saw an operating loss of $41.2 million in the quarter, versus a loss of $1.5 million in the same period last year. Hawker Beechcraft’s financial results were negatively affected by reduced aircraft deliveries, workforce-reduction charges and sagging valuations for used aircraft in its inventory. The company delivered 15 business jets (one Hawker 4000, five Hawker 900XPs, one Hawker 850XP, five Hawker 750s and three Premier IAs) and 29 King Air turboprop twins in the first quarter, versus 20 jets (six 900XPs, two 800XP/850XPs, three 400XPs and nine Premier IAs) and 29 King Airs in the same period last year. It shipped 13 piston aircraft in the first quarter, 10 fewer than in the same period last year. Order backlog was $7.3 billion as of March 29, which is actually higher than the $6.8 billion on record at the end of March last year, though the company anticipates a declining backlog for the remainder of the year. On Tuesday, the company notified employees of further production and workforce reductions.