Hawker Beechcraft reported a loss of $42.2 million in the third quarter, but that was actually a big improvement over last year, when the Wichita aircraft maker lost $81.4 million in the same period.
Overall sales were down, totaling $518.8 million in this year’s third quarter compared with $594.7 million during the same period last year. The company delivered 38 airplanes in the quarter, compared to 49 deliveries in the third quarter a year ago.
Hawker Beechcraft blamed the drop on supply disruptions that affected production of the Hawker 4000, King Air and piston aircraft lines, saying the slowdown delayed deliveries that were supposed to have been made in the third quarter.
The Hawker 4000’s supplier difficulties have been solved, but while deliveries have resumed in the U.S., Hawker Beech must still obtain government approvals from other countries before overseas deliveries can resume. King Air and piston aircraft supply disruptions are expected to continue into the fourth quarter, which will mean fewer deliveries than planned, the company said.
So far this year, Hawker Beechcraft has delivered 127 airplanes, compared to 137 through the same period last year. Hawker Beechcraft’s order backlog stood at $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, the company reported. About 28 percent of Hawker Beechcraft’s order backlog is for deliveries not scheduled to be made for at least 12 months, it said.
Hawker Beech’s Global Customer Support division, meanwhile, netted $126.7 million in the third quarter, a drop of $8.9 million compared with sales of $135.6 million in the year-ago period.
“We continue to improve our operating cost structure primarily by the investments we are making to drive costs out of the business,” said Bill Boisture, Hawker Beechcraft chairman and CEO. “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.”
