Hawker announces losses for Q1
Hawker Beechcraft has reported lower net sales and an increased operating loss for the three months ending March 29, compared to the same period in 2008
The losses were due to fewer commercial aircraft deliveries and charges associated with workforce reductions and used aircraft valuations.
However, net income from the US-based company which is represented in the Middle East by Dubai's Empire Aviation, was higher during the first quarter of 2009 compared to the first quarter of 2008 as a result of gains realised on the previously disclosed repurchase of the Company’s debt securities.
Net sales for the three months ending March 29 were $537.6 million, a decrease of $38.9 million compared to the same period in 2008. Business and general aviation aircraft deliveries were impacted by the deterioration in the overall economy and totaled 57 for the quarter, compared to 72 for the first quarter of 2008. The Company delivered 15 business jet, 29 turboprop and 13 piston aircraft during the three months ending March 29, 2009.
Operating losses for the three months ending March 29, 2009, was $41.2 million, compared to a loss of $1.5 million for the same period in 2008, and was impacted by the reduced business and general aircraft deliveries, as well as a $13.6 million charge to reflect the estimated severance costs related to the work force reductions announced during the quarter.
During the first quarter of 2009, the Company also recorded a $25.3 million charge to reduce the carrying value of used aircraft inventory to reflect current market values. The first quarter of 2008 was impacted by an $18.4 million charge related to early production Hawker 4000 units.
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