The lingering recession continues to make life difficult for airplane manufacturers, and Wichita giant Cessna Aircraft is no exception. Revenue at Cessna rose about 26 percent in the first quarter compared to the same period last year, but low production and delivery levels contributed to an operating loss for the quarter of $38 million. On the bright side, Cessna parent Textron said it expects the trend to reverse itself as deliveries pick up and cost-cutting measures take hold.
Textron attributed part of the loss to fewer customers cancelling aircraft orders, resulting in a reduction in forfeited deposits to boost Cessna’s bottom line. Increased R&D costs also contributed to the losses, along with inflation eating into profits from the CJ4 production line, the company said. Textron CEO Scott Donnelly called the performance at Cessna “disappointing,” but added that improvement is expected “as volumes recover and the impacts of our continuing cost reduction and productivity programs take effect.”
