Wednesday April 17, 2013
Layoffs could be right around the corner at Cessna Aircraft. The head of the International Association of Machinists district 70 in Wichita, Frank Molina, says the union's been warned some of their members will be laid off.
Cessna not confirming layoffs at this time. However Cessna put out the following statement: "Cessna continues to operate within a challenging economic environment and is experiencing a slower-than-expected recovery for the aviation industry, particularly in the light jet segment. Cessna's outlook for the year has been reduced from its previous position and we are matching our production to the revised forecast and implementing other appropriate cost actions."
Sources say the layoffs will include salaried and hourly employees.
All of this stems from Cessna's parent company, Textron, reporting its first quarter financial report Wednesday.
Textron stunned the financial market reporting lower expectations for the remainder of the year.
Textron CEO Scott Donnelly tells analysts in a conference call, "Unfortunately the demand for business jets were soft again this quarter."
Donnelly went on to say, "However customers, especially in the light jet segment who tend to be small business owners continue to defer business decisions reflecting concerns about their financial outlook."
When asked Donnelly wouldn't say how many fewer jets are expected to be sold but estimated lower Cessna sales could take $200 million off this year's revenues. Textron lowered it's expected 2013 earnings by $.20 a share due to the lower forecast.
Textron's stock dropped 13.5% Wednesday.