Cessna sales, profits fall on lower deliveries

July 22, 2010


July 21--Cessna Aircraft revenue fell $236 million in the second quarter this year while profits declined $45 million as the company delivered fewer aircraft, Cessna reported.

The decreases were partially offset by higher aftermarket and used aircraft volumes.

Cessna delivered 43 jets in April, May and June, compared to 84 jets during the same time a year ago.

Deliveries included 23 light-to-mid-size jets and 20 Citation Mustangs.

The company had a number of order cancellations during the quarter, including a large order for Mustangs from a European fleet operator, officials from Textron, Cessna's parent company, said during a conference call about second quarter results.

The market has been tracking as expected this year, but slowed in June with concerns about the economy.

It's not clear how long that pause will last, officials said.

The company continues to expect the business jet market to recover and that 2010 will be the lowest year for deliveries.

Cessna is monitoring the market closely, however, to see whether production plans for the year could be impacted.

It hopes Congress will pass a bonus depreciation benefit that would allow buyers to depreciate a new business jet faster to help stimulate sales.

Cessna posted revenue for the quarter of $635 million, compared to $871 million during the same period a year ago. Profit totaled $3 million in the quarter, compared with $48 million a year ago.

For the first half of the year, Cessna posted sales of $1.07 billion, compared to $1.64 billion a year ago. It posted a loss of $21 million so far this year, compared to a profit of $138 million for the first half of 2009.

Its parent company, Textron, posted revenue of $2.71 billion for the quarter, up from $2.6 billion the same time a year ago.

Net income at Textron totaled $82 million, or 27 cents per share, for the quarter, compared to a loss of $58 million, or a loss of 22 cents per share, a year ago.