Business

April 30, 2012

Hawker Beechcraft warns employees of 350 layoffs

by Roxana Hegeman
Associated Press

Aircraft maker Hawker Beechcraft gave 60-day layoff notices to about 350 workers at its plant in Wichita, Kansas, April 23, about a week after it reported a nearly $633 million net loss for 2011.

The company, which manufacturers business and military aircraft, cited market conditions for the move in a letter sent to employees. The company is struggling under a debt burden of more than $2.33 billion, according to its recent Securities and Exchange filing, and has been renegotiating its debt with its lenders.

“While we have experienced success with our transformation, market conditions are requiring us to adjust our overall production cadence to help ensure the company will compete effectively in the future,” company executives said in the letter dated April 23.

“This remains a difficult, unprecedented time for our company, our employees and our industry,” they added, asking employees to remain focused on their jobs “as we carry on our effort to become a smaller, more agile company.”

The company insisted in an email that the layoffs wouldn’t affect its agreement to keep its aircraft operations in Kansas for 10 years as part of a $45 million deal with state and local officials. The company agreed in 2010 to maintain current aircraft lines and keep at least 4,000 jobs in Kansas until 2020.

Phone messages and emails seeking comment from Gov. Sam Brownback’s office and from the president of the machinists’ union representing Beechcraft workers weren’t immediately returned late Monday afternoon.

The company’s annual statement, filed with the SEC on April 13, showed losses from operations of $481.8 million in 2011. But those losses swelled to a $632.8 million net loss when adding in other expenses – such as the $135.6 million in interest payments last year by the heavily indebted company, according to the filing.

Hawker Beechcraft’s financial woes come as it struggles under a debt burden it has carried since 2007, when Raytheon Aircraft sold off the company. Its SEC report listed a total debt of more than $2.33 billion as of the end of last year.

It’s unclear how many employees the company now has in Kansas. As of November, the Wichita plant employed 4,700 workers. Company spokeswoman Nicole Alexander said Monday that she didn’t have a current employment number.

According to its SEC filing, the company employs 7,400 people, including workers at its plant in Little Rock, Ark. Beechcraft also has plants in England and Mexico, and has more than 100 service centers worldwide.

 




All of this week's top headlines to your email every Friday.


 
 

 

Headlines October 1, 2014

Veterans: Substantial VA staff will face discipline - A substantial number of VA employees will face punishment for the veterans treatment scandal, the new national commander of the American Legion predicted Sept. 30, indicating that the slow pace of discipline has more to do with the hoops the department must jump through than it does a...
 
 

News Briefs October 1, 2014

Egypt president gives army control of arms imports The Egyptian president has amended a law, giving the country’s army control over weapons and ammunition imports. The Sept. 30 statement from the presidency says Abdel-Fattah el-Sissi changed articles stipulating that a permit for weapons’ imports has to be granted by the Interior Ministry, which is in...
 
 
atk-test

ATK successfully tests Orion launch abort motor igniter

NASA and ATK successfully completed a static test of the launch abort motor igniter for the Orion crew capsule’s Launch Abort System. Conducted at ATK’s facility in Promontory, Utah, this test is the next step towa...
 

 
uav-coalition

Small UAV coalition launched to advance commercial use of unmanned aerial vehicles

Leading technology companies Oct. 1 formally announced the formation of the Small UAV Coalition to help pave the way for commercial, philanthropic, and civil use of small unmanned aerial vehicles in the United States and abroad...
 
 
Navy photograph

NAWCWD manned for unmanned systems

Navy photograph A rail launch is performed during Integrator unmanned aerial vehicle testing at Naval Air Warfare Center Weapons Division China Lake, Calif. Naval Air Warfare Center Weapons Division scientists, engineers, techn...
 
 
NASA photograph by Ken Ulbrich

NASA employees go ‘above and beyond’

Courtesy photograph NASA Chief Scientist Albion Bowers, Christopher Miller and Nelson Brown receive the Exception Engineering Achievement Medal at Armstrong Research Center, Edwards Air Force Base, Calif. The prestigious award ...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>