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Hawker Beechcraft posts $42.2 million third-quarter loss
The Wichita Eagle ^ | 10/31/29011 | Molly McMillin

Posted on 11/02/2011 2:09:37 PM PDT by DefenseMatters

Hawker Beechcraft posts $42.2 million third-quarter loss

BY MOLLY McMILLIN

The Wichita Eagle

Hawker Beechcraft on Monday reported an operating loss of $42.2 million in the third quarter, an improvement from losses of $81.4 million for the same period a year ago.

Sales totaled $518.8 million, down from $594.7 million during the same period last year because of lower aircraft deliveries. The company delivered 38 aircraft in the quarter, compared to 49 deliveries a year ago.

The decline is due to supply disruptions that affected the production of the King Air, Hawker 4000 and piston aircraft, which delayed deliveries, the company said.

The supply disruption for the Hawker 4000 has been resolved and deliveries have resumed in the U.S., the company said. However, it must obtain government approvals from other countries before the Hawker 4000 can be delivered in those areas. King Air and piston aircraft supply disruptions are expected to continue in the fourth quarter, which will mean fewer deliveries than planned.

So far this year, Hawker Beechcraft has delivered 127 planes, compared to 137 through the same period last year.

The company's order backlog totaled $1.3 billion on Sept. 30, compared to $1.4 billion on June 30. Aircraft deliveries during the quarter totaled $519 million, compared to new orders of $526 million and order cancellations of $30 million. About 28 percent of Hawker Beechcraft's order backlog is for deliveries scheduled a year or more away.

"We continue to improve our operating cost structure primarily by the investments we are making to drive costs out of the business," Bill Boisture, Hawker Beechcraft chairman and CEO, said in a statement. "However, we continue to feel the effects of the depressed light-jet market, which is evidenced by fewer deliveries in our business and general aviation segment this quarter."

A lack of confidence in the global economy continues to lead to lower aircraft demand, Boisture said.

Deliveries of the company's trainer and attack aircraft totaled 18 in the third quarter, down slightly from 20 deliveries during the same time a year ago. For the year, Hawker Beechcraft has delivered 60 military planes, up from 58 a year ago. Sales in the segment totaled $133.7 million during the quarter, down $27.4 million from a year ago.

The decline was primarily due to a decrease in spare parts and training system sales, and slower production levels because fewer aircraft were under contract compared to a year ago, the company said.

Operating income in the segment, meanwhile, totaled $12.6 million, down from $20.2 million a year ago.

In September, the company delivered its 100th T-6B military trainer to the U.S. Navy.

The company is ready for production of AT-6 attack aircraft if the Air Force awards the contract to Hawker Beechcraft for Light Air Support programs, it said. The company is vying with Brazil-based Embraer for the contract.

Hawker Beechcraft officials also called last month's National Business Aviation Association annual convention and exhibition a success. The company signed several purchase agreements for Hawker and Beechcraft aircraft during the show in Las Vegas and is heading into the fourth quarter with a "great deal" of momentum, it said.


TOPICS: Business/Economy; Foreign Affairs; Government; News/Current Events
KEYWORDS: afghanistan; at6; las; usaf
It would be insane to trust HBC with the upcoming LAS contract. The company is about to go bankrupt and the AT-6 is an unproven prototype.
1 posted on 11/02/2011 2:09:48 PM PDT by DefenseMatters
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To: DefenseMatters

Damn, that’s very bad news. I have a very good friend that started to work there, about a year ago. Changing careers again, in your 50’s is no fun.


2 posted on 11/02/2011 2:15:28 PM PDT by Capt_Hank (btu's...kcal's...to kJ's, but my activation energy is still high.)
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To: Capt_Hank

Is this fall-out from Obama attacking corporate jet owners? Have people and companies backed off buying private planes to preserve a better public image?


3 posted on 11/02/2011 2:18:01 PM PDT by 5thGenTexan
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To: 5thGenTexan

I would have to say, yes. I see that Piper is also having big problems with sales down here in Vero.


4 posted on 11/02/2011 2:31:03 PM PDT by Capt_Hank (btu's...kcal's...to kJ's, but my activation energy is still high.)
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To: Capt_Hank

Capt Hank,
Last week Piper laid off a bucket load of workers.

King Air is one tank of an aircraft.
Virtually the DC-3 of today.
The choice of marijuana trafickers the world over.
Course it is no Starship, but.


5 posted on 11/02/2011 2:44:59 PM PDT by Joe Boucher (FUBO ( Real conservative or go fish))
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To: DefenseMatters

Too bad that the FAA has made owning and maintaining an aircraft insanely expensive.


6 posted on 11/02/2011 2:56:11 PM PDT by Blood of Tyrants (Never believe anything in politics until it has been officially denied.)
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To: DefenseMatters
Half of Hawker Beech is owned by a Canadian company.

The other half is owned by Goldman Sachs.

Sounds like time for another government bailout....

7 posted on 11/02/2011 3:36:16 PM PDT by paddles ("The more corrupt the state, the more it legislates." Tacitus)
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To: DefenseMatters
Out of the blue of the Western sky comes Sky ... backorder"
8 posted on 11/02/2011 4:36:16 PM PDT by NonValueAdded (So much stress was put on Bush's Fault that it finally let go, magnitude 6)
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To: Blood of Tyrants
Too bad that the FAA has made owning and maintaining an aircraft insanely expensive.

Interesting article in November Air & Space about Emergency Locators (ELTs). The article boosts a couple of privately developed digital ELTs which seem to be very effective, and cost between $1000-2000 installed. The article says FAA will not require these to be installed "because the cost would be too burdensome to aircraft owners". I remarked to my wife "that is the first time I ever heard of the FAA giving a d--n about cost to the owner". Then I read further and found that the FAA is eyeing a nationwide system that is primarily for traffic separation and control, and would cost $20,000 plus per aircraft. An FAA spokesperson was asked how this system would be better than the much less expensive, already existing digital ELTs. She replied "We have already given you an interview on that. I believe we are done here". Same old FAA!

9 posted on 11/02/2011 4:56:28 PM PDT by 19th LA Inf
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To: paddles

That’s what HBC gets for opening those plants in Mexico.


10 posted on 11/02/2011 5:16:54 PM PDT by Gulf War One
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To: Gulf War One

No kidding. In the LAS competition HBC, a Canadian company offering a Swiss design whilst moving their manufacturing to Mexico (3 facilities so far) has the nerve to wrap themselves in the flag and whine about foreign competition.


11 posted on 11/03/2011 7:46:09 AM PDT by paddles ("The more corrupt the state, the more it legislates." Tacitus)
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To: DefenseMatters

http://www.facebook.com/photo.php?fbid=1485728778356&set=o.222717911085698&type=1&theater


12 posted on 11/03/2011 8:31:09 AM PDT by DefenseMatters (Hawker Beechcraft is moving jobs to Mexico as fast as they can -- and quality isn't the issue)
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To: paddles

Very well put.


13 posted on 11/03/2011 5:41:42 PM PDT by Gulf War One
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