Hawker Beechcraft Posts $140 Million Loss

Hawker Beechcraft reported net sales of $3.5 billion and operating income of $135 million last year, though it also posted a net after-tax loss of $140 million. Net bookings for the year were $4.8 billion and year-end backlog was $7.6 billion. According to the Wichita-based aircraft manufacturer, a strike by unionized assembly workers in August "significantly" affected net sales. Despite the strike, Hawker Beechcraft last year delivered 441 aircraft (160 business jets, 178 turboprops and 103 pistons), 11 more than in 2007.

Some $91 million of the losses stemmed from increased costs to conform early-production Hawker 4000s to the final type design and "establish more normal production processes." This also resulted in fewer-than-planned deliveries of the super-midsize jets. The company said it still has $378 million in cash and cash equivalents, as well as enough unused credit to get it through this year at least. However, as the general economy has deteriorated, new order activity has declined and order cancellations have increased, meaning Hawker Beechcraft expects its backlog to dwindle this year.