HBC: Backlog and Deliveries Up, but GA Revenues Down

 - May 3, 2011, 10:30 AM

In its first-quarter earnings call this morning Hawker Beechcraft announced it has increased its backlog over the previous quarter by $122 million, to $1.5 billion (marking the first time the company has posted a quarterly increase since the third quarter of 2008), with new orders of $714 million exceeding its cancellations of $33 million. While the Wichita-based airframer increased its first-quarter business and general aviation deliveries to 45 from 34 year over year, revenue in the segment decreased, because King Airs accounted for more than half of the aircraft delivered. “The business and general aviation segment is in fact depressed by the uncertainty and the lack of confidence that people feel about the global economy,” said Hawker Beechcraft chairman and CEO Bill Boisture. “Our decrease in revenue in this segment is primarily a change in the mix of aircraft sold. We sold more of the lower-price products in the first quarter.” Overall, the business and general aviation segment reported sales of $286.2 million in the first quarter of 2011, a $48.9 million decrease from the $335 million posted a year ago. Yet, according to Boisture, the cyclical increase in backlog and deliveries is encouraging. “We’re beginning to see stabilization in some of the key market indicators and I would say we’re cautiously optimistic that a market recovery for us and our industry will begin in 2012.”