Hawker Beechcraft 3Q GA Sales Down by $98.6 Million
During an earnings conference call yesterday, Hawker Beechcraft reported a drop in business and general aviation (B&GA) sales of $98.6 million for the third quarter of this year compared with the same period last year. B&GA deliveries during the same period dropped to 64 from 86 aircraft. The 64 aircraft include 25 jets, 30 turboprops and nine piston aircraft. Although last year’s third quarter was affected by a workforce strike, the 86 deliveries included 34 jets, 31 turboprops, 19 pistons and two military King Airs. The customer support segment was also affected, dropping to $100.2 million from $125.7 million in the same three-month period last year, according to Hawker Beechcraft, “reflecting reduced volumes and the impact of the sale of the fuel and line operations in late 2008.” A positive cash flow during the quarter of $58.5 million was the result of reduction of inventory on hand and lower costs associated with new materials due to “revised production levels and improved inventory management.” The last two quarters saw orders exceed cancellations, according to chairman and CEO Bill Boisture, and the backlog is $6.6 billion, down from $7.9 billion at the end of last year’s third quarter. Third-quarter orders totaled $425 million and cancellations $342 million. “We’re in constant dialog with NetJets,” he said, “and have not adjusted our backlog, nor have they made any decisions regarding their orders; they remain a component of the backlog.” Hawker Beechcraft yesterday also confirmed plans to close its plant in Salina, Kan., where 240 people are employed manufacturing structural parts in 10 buildings spanning 484,000 sq ft. Hawker Beechcraft’s lease ends Feb. 12, 2012.