Cessna Says It will Cut 700 Jobs
ANN Realtime Update 09.21.2010 1530
Cessna said Tuesday it will cut another 700 positions because of
the sluggishness of the economy.
Multiple media sources indicate that Cessna CEO Jack Pelton sent
an e-mail Tuesday to Cessna employees announcing the move. Pelton
said that cancellations have slowed, but that "the recovery and
growth we expected to see throughout the year have not
materialized, and the timing of any recovery remains
The 700 jobs to be cut are in addition to the 8,000 positions
Cessna has shed since 2008. The company has about half as many
workers at its Wichita operations than it did late in that
The Associated Press reports that company spokesperson Doug
Oliver said the timing of the layoff notices had not yet been
determined. He said the layoffs would be company-wide.
Union machinists at Cessna this past weekend ratified a new
seven-year contract by default when a strike resolution failed to
get a favorable vote from a majority of the union membership. A
majority voted to reject the contract, but did not vote to walk off
the job. Oliver said the two events were unrelated.
Original Story: Cessna parent Textron reported
Tuesday that it is adjusting aircraft production schedules and
reducing headcount at its Cessna business unit due to continued
weakness in new aircraft orders.
"While we are seeing solid performance in most of our other
businesses, we have not yet seen a discernible improvement in
business jet order activity," said Textron chairman and chief
executive officer Scott C. Donnelly. "Therefore, we are taking
further production and restructuring actions at Cessna."
The company still expects 2010 earnings per share from
continuing operations excluding special charges to be in the range
of $0.55 to $0.65. Manufacturing free cash flow from continuing
operations for the year is now expected to be approximately $400
million, compared to a previous target of $500 - $550 million,
reflecting lower expected jet deliveries.
Higher finance receivable liquidations at Textron Financial
should more than offset the lower expected cash from manufacturing
operations, as the company now expects to reduce receivables by
$2.4 billion this year, up from its previous target of $2.0 billion
and its original target of $1.6 billion. During the third quarter,
the company repaid the $665 million balance remaining on the
Textron Inc. $1.25 billion bank line. The company continues to be
on track to reduce net debt below $5.5 billion by the end of the
Textron plans to issue third quarter financial results on
Wednesday, October 20, 2010.