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 April 18, 2014

Business: Lockheed to Lose 17 F-35s Under Automatic Pentagon Cuts - Pentagon will cut 17 of the 343 F-35 fighters it planned to buy from Lockheed Martin in fiscal 2016 through 2019 unless Congress repeals automatic budget cuts, according to a new Defense Department report. DOD looking for ways not to break MH-60R helo deal - The...
 
 

News Briefs April 18, 2013

U.S. military deaths in Afghanistan at 2,177 As of April 15, 2014, at least 2,177 members of the U.S. military had died in Afghanistan as a result of the U.S.-led invasion of Afghanistan in late 2001, according to an Associated Press count. At least 1,802 military service members have died in Afghanistan as a result...
 
 
LM-F35-hours

F-35 fleet surpasses 15,000 flying hours

The Lockheed Martin F-35 Lightning II fleet recently surpassed 15,000 flight hours, marking a major milestone for the program.  “Flying 15,000 hours itself demonstrates that the program is maturing, but what I think is e...
 

 
nasa-cassini

NASA Cassini images may reveal birth of new Saturn moon

NASA’s Cassini spacecraft has documented the formation of a small icy object within the rings of Saturn that may be a new moon, and may also provide clues to the formation of the planet’s known moons. Images taken w...
 
 

NASA completes LADEE mission with planned impact on Moon’s surface

Ground controllers at NASA’s Ames Research Center in Moffett Field, Calif., have confirmed that NASA’s Lunar Atmosphere and Dust Environment Explorer spacecraft impacted the surface of the moon, as planned, between 9:30 and 10:22 p.m., PDT, April 17. LADEE lacked fuel to maintain a long-term lunar orbit or continue science operations and was intentionally sent...
 
 
Photograph courtesy of NASA Ames/SETI Institute/JPL-Caltech

NASA’s Kepler telescope discovers first Earth-size planet in ‘habitable zone’

Photograph courtesy of NASA Ames/SETI Institute/JPL-Caltech Kepler-186f resides in the Kepler-186 system about 500 light-years from Earth in the constellation Cygnus. The system is also home to four inner planets, seen lined up...
 




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>