Hawker Beechcraft B&GA deliveries up in first quarter 2011
HBC reports increase in business and general aviation aircraft deliveries
Hawker Beechcraft delivered 45 business and general aviation aircraft in
the first quarter 2011 compared to 34 aircraft deliveries in the first quarter
of 2010. The company announced an increase in the backlog of US$122 million versus the fourth quarter of 2010 with new orders of US$714
million exceeding cancellations of US$33 million. HBC revenues in the business
and general aviation segment have decreased by 14.6 percent and operating
losses increased by 31.9 percent versus the first quarter 2010.
The company reported revenues
in the Global Customer Support (GCS) segment increased by 3.4 percent and
operating income increased by 8.3 percent versus the first quarter 2010.
“We are coming off of a
solid 2010 and our momentum into 2011 is encouraging,” said Bill Boisture, HBC
chairman and CEO. “While the first quarter is historically a quieter one for
the industry, we believe the uptick in our aircraft shipments and increased
backlog is evidence of the ongoing demand for our products.”
The B&GA segment
reported sales of US$286.2 million in the first quarter 2011, which was a
decrease of US$48.9 million versus the first quarter 2010 sales of US$335.1
million. The revenue decrease was attributed to the delivery of a higher
percentage of lower priced aircraft in the first quarter 2011 versus the same
period of 2010. In addition, revenues from the sale of used aircraft received
as trade-ins were lower by US$20.7 million, which was due to the Company’s
continued low inventory of pre-owned aircraft.
The B&GA segment
recorded an operating loss of $86.5 million for the first quarter 2011, which
was an increased loss of $20.9 million compared to $65.6 million during the
same period of 2010.
“We continue to experience
significant losses in our B&GA segment,” Boisture said. “This was driven in
large part by loss making aircraft charges, higher sales and marketing expenses
related to our international expansion, expenses associated with our cost
reduction initiatives, and continuing weakness in the general aviation market.
“Due to strong sales in the
fourth quarter of 2010, we started the year with fewer jets in inventory, which
in turn led to four fewer jet deliveries compared to the first quarter of last
year. However, we delivered 15 more Beechcraft aircraft versus last year –
including several special mission aircraft – which speaks to the market
recognizing the inherent attributes of Beechcraft products’ efficiency and
utility, especially in a down market.”