Hawker's deliveries fall, and so do its losses
08/04/2011 7:08 AM
08/08/2014 10:04 AM
Hawker Beechcraft saw fewer aircraft deliveries but reduced its losses in the second quarter, the company said Wednesday.
Deliveries for the three-month period ending June 30 were 65 compared with 76 in second quarter of 2010.
The company posted a $51.3 million loss in the second quarter. That's down from a $74.8 million loss in the same period a year ago.
Hawker also said in a news release that it tapped $25 million in cash on July 21 from its revolving credit facility "in order to keep a prudent amount of cash on hand as it works through the supply issues, seasonal slowdown and working capital swings driven by transformative projects."
The drawdown follows a second-quarter decrease in available liquidity — from $546 million at the end of first quarter 2011 to $382.4 million — because of several factors including temporary supply disruptions, the company said.
Hawker's liquidity has at least one analyst concerned. In a note Wednesday to clients, Barclays Capital analyst Matthew Vittorioso said the "greater-than-expected cash burn is disappointing."
"We'll be looking for more color around the company's liquidity situation" on a Hawker conference call with analysts today, Vittorioso wrote.
He added in the note that Hawker's revenue and earnings before interest, taxes, depreciation and amortization were generally in line with expectations.
Hawker said its sales for the quarter were $581.7 million. That's down from $639.3 million in second quarter 2010.
In the release, Hawker CEO Bill Boisture attributed the company's losses for the quarter to its business and general aviation aircraft segment. That segment posted a $64.9 million operating loss in the second quarter.
"Ongoing market concerns in Europe and around the globe continue to dampen confidence of buyers worldwide, which is evidenced by the continued softness in our primary segments, especially the light and mid jet market," Boisture said in the release.
The company recorded a profit in its trainer/attack segment and global customer support, where segment operating income increased $5.4 million compared to second quarter 2010.
The company also noted in its quarterly results release that it is in the process of a new contract with the International Association of Machinists. The company and the union have reached a tentative agreement, which union members will vote on Saturday.
Boisture said in the release that the business and general aviation industry continues to be challenging to operate in.
But "we are continuing to invest in projects to transform ourselves into a leaner and more efficient manufacturer and in our people through training and education programs," he said. "These things combined will help us emerge from this downturn as a stronger, more agile company."