Hawker Beechcraft Corporation suffers $139.9-million net loss in 2008

Aircraft manufacturer Hawker Beechcraft Corporation (HBC), headquartered in Wichita, Kansas, the United States, has posted a net post-tax loss of $139.9 million for the 12 months ending December 31, 2008.

However, HBC’s sales went up in 2008, according to the company’s 2008 financial report.
For the 12 months ending December 31, 2008, the company reported net sales worth $3.5 billion and an operating income of $135.5 million.

Hawker Beechcraft Corporation, one of the leading general-aviation companies in the world, makes the famous Hawker aircraft and Beechcraft aircraft. It employs over 8,000 people and has manufacturing and maintenance facilities in more than 70 countries.

In a press release, Hawker Beechcraft Corporation said the company’s net sales were “significantly affected” by the month-long strike by the International Association of Machinists and Aerospace Workers in August 2008.

In 2008, the company delivered 441 business-aviation aircraft and general-aviation aircraft – consisting of 160 business jets, 178 turboprop planes and 103 piston aircraft. Hawker Beechcraft Corporation had delivered, in combination with its predecessor Raytheon Aircraft Company, 430 business aviation aircraft and general aviation aircraft in 2007.

According to the company’s press release, the strike by the members of the International Association of Machinists and Aerospace Workers in August 2008

disrupted Hawker Beechcraft’s manufacturing and assembly operations, resulting in considerable reduction of deliveries for the rest of 2008.

Net bookings for 2008 were $4.8 billion and the backlog at the end of the year was $7.6 billion. Hawker Beechcraft Corporation said it expected the backlog to go down further in 2009.

The press release said the company’s operating cash flow in 2008 amounted to $69.0 million, which was considerably influenced by a rise in inventory as a result of the strike by machinists as well as delays in deliveries of the Hawker 4000.

While Hawker Beechcraft’s business-aviation and general-aviation segments posted sales of $2,820.6 million and an operating income of $24.7 million in 2008, its trainer-aircraft segment achieved sales worth $338.2 million.

The company said it had, at the end of 2008, $377.6 million in cash and cash equivalents. “With the cash on hand, anticipated cash from operations and, if required, borrowings under the revolving credit facility will be sufficient to meet its cash requirements through 2009,” the Hawker Beechcraft Corporation press release said.

Hawker Beechcraft has cut its workforce by about 500 people in November 2008 and has said recently that it would axe 2,300 more jobs.