Hawker Beechcraft Logs More Losses

AINalerts » August 5, 2010
August 5, 2010, 11:36 AM

Hawker Beechcraft recorded an operating loss of $20.7 million in the second quarter, bringing first-half losses to $45.8 million. Second-quarter net sales at the Wichita-based aircraft manufacturer fell $177 million year-over-year, to $639.3 million. This decrease was attributed to lower general and business aircraft deliveries “as a result of depressed demand across the general aviation market.” During the second quarter, Hawker Beechcraft delivered 54 aircraft (13 business jets, 24 King Air turboprops and 17 pistons) compared with 78 (24 jets, 41 King Airs and 13 pistons) during the same period last year. The jet mix in the recent quarter (with previous year shipments in parentheses) included four Hawker 4000s (3), three Hawker 900XPs (11), one Hawker 850XP (0), one Hawker 750 (2), two Hawker 400XPs (4) and two Premier IAs (4). Hawker’s backlog was $2.4 billion on June 27, down $700 million from the $3.1 billion reported on March 28. The company said the June 27 data reflects $400 million in cancellations from NetJets, adding that it “no longer has any backlog with NetJets.” During an investor call yesterday, company chairman and CEO Bill Boisture said that, despite some positive industry trends such as declining pre-owned inventory and increased flying activity, “The new aircraft market is still slow in Hawker Beechcraft’s segment.” 

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