The numbers weren´t as good as they´d hoped... but by all indications, the
situation should improve soon. That´s the message from Hawker Beechcraft
Acquisition Company, LLC (HBAC) which on Wednesday reported continued strong
market acceptance and demand for its products, resulting in net bookings of $
1.1 billion during the three months ending March 30, 2008. Continued strong
order activity resulted in a record backlog of .8 billion.
That´s the good news. Less encouraging was the news HBAC recorded an operating
loss of $ 1.5 million for the quarter, in part due to an $ 18.4 million charge
related to early production Hawker 4000 aircraft. This resulted from an increase
in the cost to conform the early aircraft to the final type design, according to
the company.
Also included in the operating results were non-cash charges of $ 22.1 million
resulting from increased depreciation and amortization expense due to step-up in
the cost basis of long-term assets and from foreign currency derivative
contracts, all incurred as a result of purchase accounting related to the
acquisition of HBAC.
Net sales for the quarter were $ 576.5 million. The company delivered 72
business and general aviation aircraft consisting of 20 jet, 29 turbo-prop and
23 piston aircraft. During the quarter, the company also launched a
reorganization of its Little Rock Hawker completions operations, to support the
increased aircraft completion volumes that are associated with deliveries of the
Hawker 750, and the expected introduction of the oft-delayed
Hawker 4000, this year.
These reorganization activities impacted the normal completion cycle for
aircraft during the quarter, resulting in the delivery of five
Hawker 900XP and one Hawker 850XP being shifted to
the second quarter. HBAC’s trainer segment also delivered 17 T-6A Texan II
aircraft to the US Government during the first quarter.
Operating cash consumed during the three months ending March 30, 2008 totaled $
181.9 million. This resulted from a growth in inventory in connection with
increased build rates and the delay in aircraft deliveries noted previously.
"While disappointed by this quarter’s operating results, we are still extremely
excited about our record billings, increasing backlog and our position in the
market," said Jim Schuster, chairman and CEO of Hawker Beechcraft Corporation.
"The end of the first quarter marks a tremendous first full year as Hawker
Beechcraft, having solidified our future as the largest privately-held aircraft
manufacturer in the world. We invested in new products, expanded infrastructure
and added talented people – strategically positioning our brands for continued
growth worldwide."
Source: Aero-New.net