Cessna Citation Columbus coming
07-17-2009, 03:07 PM
#31
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Not to change the subject. But here is a chart I got form this month's issue of Aerospace America, which tracks aviation business cycles as well as anyone in the business. It's going to be something like 2017 before the sales are what they were last year. The left side is total aircraft units sold.
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07-17-2009, 03:49 PM
#32
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[quote=Cubdriver;646277]Cessna is generally known for its honesty and straightforwardness in dealings and overall good behavior as a company. They take pride in maintaining a thoroughly decent way of doing business, something I always liked about them. They have a high integrity or honesty factor. It was originally a family business with origins in the roots of general aviation in America. That collective consciousness is still felt by many of the staff.
USMC, the Mustang is a runaway success for Cessna. I don't think they knew it would do so well- they can't make enough of them. As a VLJ it's a little bit pricey compared to most of its competitors, but since the Eclipse was canceled customers are interested in having one. VLJ sales have slumped with bizjet sales, but they still are strong despite the economy. Caravan is another strong seller- they can't make enough of that airplane. Unfortunately the profit margin is not as high on it.
By the way, Cessna did not kill the Columbus, Textron did. Textron as the parent company of Cessna decides what they are going to get the money to do and what they are not getting the money to do, but Textron has been completely cash strapped for about a year now. They are looking for any nickel and dime they can shave from the investment capital going out the door. Cessna has historically been a profitable company and still is, but they have become a cost cutting target for Textron. Textron stock went from a high around $70 a share a year ago to a current value of around $8.[/
Look for Textron to sell Cessna. Textron's CEO, Lewis Campbell, said he would not rule out selling one of Textron's business units to raise cash. With the military contracts Bell has, I don't see TXT selling Bell.
Although corporate aircraft sales are down, Cessna does have a good product line for just about every market and is in a good position once the industry recovers.
I'm sure Buffett would love to get his hands on Cessna. He'd have NJ's, FSI and Cessna.
We'll see.
USMC, the Mustang is a runaway success for Cessna. I don't think they knew it would do so well- they can't make enough of them. As a VLJ it's a little bit pricey compared to most of its competitors, but since the Eclipse was canceled customers are interested in having one. VLJ sales have slumped with bizjet sales, but they still are strong despite the economy. Caravan is another strong seller- they can't make enough of that airplane. Unfortunately the profit margin is not as high on it.
By the way, Cessna did not kill the Columbus, Textron did. Textron as the parent company of Cessna decides what they are going to get the money to do and what they are not getting the money to do, but Textron has been completely cash strapped for about a year now. They are looking for any nickel and dime they can shave from the investment capital going out the door. Cessna has historically been a profitable company and still is, but they have become a cost cutting target for Textron. Textron stock went from a high around $70 a share a year ago to a current value of around $8.[/
Look for Textron to sell Cessna. Textron's CEO, Lewis Campbell, said he would not rule out selling one of Textron's business units to raise cash. With the military contracts Bell has, I don't see TXT selling Bell.
Although corporate aircraft sales are down, Cessna does have a good product line for just about every market and is in a good position once the industry recovers.
I'm sure Buffett would love to get his hands on Cessna. He'd have NJ's, FSI and Cessna.
We'll see.
07-17-2009, 05:17 PM
#33
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I know there were some rumors Cessna might be sold to raise cash, but Textron is past the cash crunch of 2008 and Cessna is not likely to be sold this year, nor are they likely to sell Cessna as long as they can hold onto it. Textron itself has been the subject of buyout speculations in recent months. So far they have pushed away this event by liquidating their HR Textron division, their Fluid and Power division, and by making additional stock offerings. The last thing they want to do is sell Cessna since it is such a gold mine during better times. They are still very tight on cash but the crisis is over as long as they can maintain some kind of liquidity.
07-18-2009, 03:16 AM
#34
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I know there were some rumors Cessna might be sold to raise cash, but Textron is past the cash crunch of 2008 and Cessna is not likely to be sold this year, nor are they likely to sell Cessna as long as they can hold onto it. Textron itself has been the subject of buyout speculations in recent months. So far they have pushed away this event by liquidating their HR Textron division, their Fluid and Power division, and by making additional stock offerings. The last thing they want to do is sell Cessna since it is such a gold mine during better times. They are still very tight on cash but the crisis is over as long as they can maintain some kind of liquidity.
Hard to say what the future holds for Textron. They have been targets for a takeover recently. The Management Committee and Board of Directors may at some point be pressured into giving up control as reported by Reuters:
"Given the legacy of execution issues at Textron, high investor dissatisfaction with recent company performance and continued liquidity uncertainty, a legitimate takeover attempt will be hard to resist," wrote Citigroup analyst Jeffrey Sprague, in a note to clients.
According to the newspaper report, the consortium of buyers would plan to sell off Textron's military businesses -- Bell helicopter and Textron Systems, which makes armored vehicles. That could help to alleviate the national security concerns that could be triggered if a foreign buyer tried to buy a U.S. defense contractor.
07-27-2009, 12:02 PM
#35
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Here's a recent article by Wichita Eagle reporter Molly McMillan speaking to the issue of whether Cessna is likely to be sold any time soon. I don't have much info on Textron itself, though.
Cessna CEO Jack Pelton: Business jet market is stabilizing
(7/26/09) After a month long free fall, it feels like the business jet market is starting to stabilize, said Jack Pelton, head of Cessna Aircraft. "At some point there, we'll be able to call the bottom," Pelton, the company's chairman, president and CEO, said of the drop in the market. "The negatives, like (order) cancellations are slowing down; we're starting to see orders start to rise again." Aircraft deliveries are expected to hit their low next year, which will be followed by a steady climb, he said. "The slope of that rise will be dependent on what the economy does," he said. Pelton's boss, meanwhile, said Cessna's parent company is not interested in selling the Wichita company. "I don't know where all the rumors come from," said Scott Donnelly, president and chief operating officer of Textron. "I think I can be clear that no one is interested in any way, shape or form in divesting Cessna out of Textron. It's a central asset of what Textron is." Pelton spoke last week in a broad-ranging interview on the eve of the world's largest gathering of general aviation airplanes and airplane buffs at AirVenture in Oshkosh, Wis. The show opens Monday and runs through Aug. 2. Cessna has cut half of its work force — about 8,200 people — since November. The company has had to cut production, and employees, as order cancellations and deferrals have stacked up during the economic downturn. The layoffs include last month's announcement of 1,300 cuts, including 500 employees who will receive 60-day notices by mid-August. Those cuts, Pelton said, will put Cessna at the right employment level for 2010's planned lower production rates. Pelton said he also has heard the rumors about Textron looking for buyers for Cessna. "I work closely with the Textron board of directors," he said. "I've never felt better than knowing in this difficult time, they are really committed to Cessna." Donnelly said there is no question Cessna and the entire general aviation industry are going through a tough time. "We'll come out of this an even stronger company," he said. "We have a great brand, a great franchise and one, I know, will drive a lot of value going forward." Even in a business that is as cyclical as general aviation, Pelton said watching the business jet market continue to deteriorate has been difficult. "When we saw the indicators continue to deteriorate past what we saw in the last recessionary period ... it became very clear we were in uncharted territory with circumstances that we've never seen in the past," Pelton said. "That was very startling." Pelton said downturn has been a personally distressing time, forcing the company to dismantle what employees have built over the past five years. "Every time we have to reduce production and lay people off, it is a recurring nightmare," he said. "I've had more of those days than I would ever like to relieve in my life again."
Cessna CEO Jack Pelton: Business jet market is stabilizing
(7/26/09) After a month long free fall, it feels like the business jet market is starting to stabilize, said Jack Pelton, head of Cessna Aircraft. "At some point there, we'll be able to call the bottom," Pelton, the company's chairman, president and CEO, said of the drop in the market. "The negatives, like (order) cancellations are slowing down; we're starting to see orders start to rise again." Aircraft deliveries are expected to hit their low next year, which will be followed by a steady climb, he said. "The slope of that rise will be dependent on what the economy does," he said. Pelton's boss, meanwhile, said Cessna's parent company is not interested in selling the Wichita company. "I don't know where all the rumors come from," said Scott Donnelly, president and chief operating officer of Textron. "I think I can be clear that no one is interested in any way, shape or form in divesting Cessna out of Textron. It's a central asset of what Textron is." Pelton spoke last week in a broad-ranging interview on the eve of the world's largest gathering of general aviation airplanes and airplane buffs at AirVenture in Oshkosh, Wis. The show opens Monday and runs through Aug. 2. Cessna has cut half of its work force — about 8,200 people — since November. The company has had to cut production, and employees, as order cancellations and deferrals have stacked up during the economic downturn. The layoffs include last month's announcement of 1,300 cuts, including 500 employees who will receive 60-day notices by mid-August. Those cuts, Pelton said, will put Cessna at the right employment level for 2010's planned lower production rates. Pelton said he also has heard the rumors about Textron looking for buyers for Cessna. "I work closely with the Textron board of directors," he said. "I've never felt better than knowing in this difficult time, they are really committed to Cessna." Donnelly said there is no question Cessna and the entire general aviation industry are going through a tough time. "We'll come out of this an even stronger company," he said. "We have a great brand, a great franchise and one, I know, will drive a lot of value going forward." Even in a business that is as cyclical as general aviation, Pelton said watching the business jet market continue to deteriorate has been difficult. "When we saw the indicators continue to deteriorate past what we saw in the last recessionary period ... it became very clear we were in uncharted territory with circumstances that we've never seen in the past," Pelton said. "That was very startling." Pelton said downturn has been a personally distressing time, forcing the company to dismantle what employees have built over the past five years. "Every time we have to reduce production and lay people off, it is a recurring nightmare," he said. "I've had more of those days than I would ever like to relieve in my life again."
01-13-2010, 05:17 AM
#36
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Latest news from Cessna is they are restarting the Sovereign line and rehiring about 200 line workers to build them. Small steps, but it's a start. Columbus and several other projects remain on hold.
Cessna Restarts Sovereign Line After Restructuring Company.
Aviation Week (1/12, Lynch) reported Cessna has decided to restart its Citation Sovereign line, "bringing back to life the last of the production lines that were shuttered early last summer," albeit at "greatly reduced rates."
Cessna Restarts Sovereign Line After Restructuring Company.
Aviation Week (1/12, Lynch) reported Cessna has decided to restart its Citation Sovereign line, "bringing back to life the last of the production lines that were shuttered early last summer," albeit at "greatly reduced rates."
05-15-2012, 07:01 PM
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Yeah Cessna has gone nuts with the names.
As far as the airplane is concerned, I am not talking to pals at the mother ship lately, but I would venture a guess the wing and fuselage are taken directly from Columbus origins, with an artistic rendering of the tail. The engine is probably pretty accurate being from Snecma. Appears to be a high bypass ratio turbine. Tails tend to change a lot through flight testing, so it is not cheating to basically make them up early on for PR purposes. The tail on this bird seems to have less sweep than normal, and there is no dorsal strake either. But that tends to change when they conduct flight testing and discover handling problems.
I hope they make this jet. They know they can do it and it will be a very good airplane if they do. However, they are still short on R&D funds, and a little bird told me Textron authorized Cessna to bid on the Hawker 4000 Type Certificate this week, thus adding it the Cessna brand under a new name. Which by the way, would make the Longitude a non-starter. Can't help but think maybe they are just playing a PR game to drive down the price. I can say from my days within, that Cessna wants a super-midsize like there's no tomorrow.
As far as the airplane is concerned, I am not talking to pals at the mother ship lately, but I would venture a guess the wing and fuselage are taken directly from Columbus origins, with an artistic rendering of the tail. The engine is probably pretty accurate being from Snecma. Appears to be a high bypass ratio turbine. Tails tend to change a lot through flight testing, so it is not cheating to basically make them up early on for PR purposes. The tail on this bird seems to have less sweep than normal, and there is no dorsal strake either. But that tends to change when they conduct flight testing and discover handling problems.
I hope they make this jet. They know they can do it and it will be a very good airplane if they do. However, they are still short on R&D funds, and a little bird told me Textron authorized Cessna to bid on the Hawker 4000 Type Certificate this week, thus adding it the Cessna brand under a new name. Which by the way, would make the Longitude a non-starter. Can't help but think maybe they are just playing a PR game to drive down the price. I can say from my days within, that Cessna wants a super-midsize like there's no tomorrow.
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