Hawker posts $451 million loss

Feb. 11, 2010


Feb. 10--The weak economy hasn't been kind to Hawker Beechcraft Corp., which ended 2009 with a net loss of $451 million, the Wichita planemaker reported Tuesday.

That loss compares with a net loss of $155.8 million in 2008, it said. Sales for the year were $3.2 billion compared with $3.5 billion in 2008.

Further illustrating Hawker Beechcraft's troubles was a report in Tuesday's Wall Street Journal that said Goldman Sachs Capital Partners, one of its owners, has written down the value of the company by 85 percent.

Goldman and Onex purchased the planemaker from Raytheon Co. in 2007 for $3.3 billion. The Journal reported that Goldman told investors of the write-down in September.

"Inside Goldman, the deal has been regarded as a disappointment," the Journal reported.

A Goldman Sachs spokeswoman declined to confirm the report.

Hawker Beechcraft is planning a March 4 earnings call with analysts.

Hawker Beechcraft reported 2009 operating losses of $712 million compared with operating income of $140.3 million in the prior year.

The company's business and general aviation segment had an operating loss of $801.7 million last year. Its trainer aircraft business, meanwhile, recorded operating income of $45.5 million. The customer support segment had operating income of $44.1 million.

Operating income was affected by non-cash impairment and other charges totaling $726.4 million in the third quarter. Excluding the charges, operating income was $14.4 million for the year.

For the year, Hawker Beechcraft reported that it delivered 309 business and general aviation aircraft -- 98 jets, 155 turboprops and 56 piston aircraft -- down from 441 deliveries in 2008.

It also delivered 109 T-6 military trainers during the year, up from 36 in 2008.

Hawker Beechcraft's backlog fell 55 percent at the end of the year to $3.4 billion. That's down from $7.6 billion at the end of 2008.

The backlog reflects cancellations by fractional ownership company NetJets, which canceled a $2.6 billion order in December.

Reach Molly McMillin at 316-269-6708 or [email protected].