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Hawker 4000 puts drag on quarter

The long-awaited business jet must undergo changes to meet FAA certification, company officials say.

BY MOLLY MCMILLIN

The Wichita Eagle

Hawker Beechcraft recorded a $1.5 million operating loss for the first three months of the year from charges related to its long-awaited Hawker 4000 business jet, company officials said Wednesday.

At the same time, the company reported a record backlog of orders.

"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," Hawker Beechcraft chairman and chief executive Jim Schuster said in a statement.

The loss was from an $18.4 million charge related to Hawker 4000 super-midsize jets on the production line, the company said. Hawker Beechcraft must make changes to the composite planes to conform with the final type design from the Federal Aviation Administration, it said.

Hawker Beechcraft spokesman Andrew Broom didn't have details on the changes, but said they were "nothing earth-shattering."

"We are working with the FAA to finish all the paperwork," Broom said. "We anticipate delivering the 4000 soon."

He declined to be more specific, but a company official has said recently that deliveries could start in May or June.

FAA spokeswoman Elizabeth Cory said the FAA is working with Hawker Beechcraft on completing work complying with an amendment to the type certificate. She declined to be more specific.

The FAA must certify the plane to clear the way for customer deliveries.

The Hawker 4000 has been 12 years in the making. The company once expected to deliver 11 Hawker 4000s in 2006 and 16 in 2007.

Hawker Beechcraft said its order backlog increased $1.1 billion during the first three months of 2008 to a record $6.8 billion.

Net sales for the period totaled $576.5 million, down from $667.8 million for the same time a year ago.

The company delivered 72 aircraft in the period, compared to 79 for the same time a year ago. Hawker delivered 20 jets, 29 turboprops and 23 piston aircraft in the first three months of 2008, it said.

The company will hold a conference call with analysts on Tuesday.

Reach Molly McMillin at 316-269-6708 or mmcmillin@wichitaeagle.com.