Credits Meridian Turboprop Sales For Fueling The Increase
Piper Aircraft reports that it ended 2011 with increased revenue
from new aircraft sales of $131.2 million, up more than nine
percent from $120.2 million a year ago. The increase was fueled
primarily by a favorable mix of Piper's flagship single-engine
Meridian turboprop deliveries in 2011. Piper delivered 32 new
top-end Meridians in 2011 compared with 25 in 2010.
Piper Meridian File Photo
"Our program to level-load the factory has resulted in a more
stable quarterly revenue stream from the sale of new aircraft along
with continuing manufacturing efficiencies, which we expect to
continue," said Piper President and CEO Simon Caldecott. Quarterly
revenue during the year grew from $26 million first quarter to $31
million second quarter to $35 million third quarter and to $38
million in the fourth, reflecting a steady and well-managed
delivery and manufacturing pace.
"Piper continues to meet or exceed our internal financial and
delivery targets, and we are focused on continuing to balance our
production activities with the marketplace. Moreover, increased
deliveries of the top-end Piper Meridian and a larger backlog for
our overall core products entering 2012 mean that the company is
stronger financially than just a year ago or the previous year," he
added. Cumulative 2011 deliveries of Piper's M-Class high-end
aircraft - single-engine Meridian, Mirage and Matrix business
airplanes - increased to 82 aircraft from 74 in the preceding
year.
Piper Matrix File Photo
Fourth quarter revenue from new aircraft sales was $38.7 million
and included eight new Meridian sales in the United States and one
abroad. Overall, Piper's initiatives to expand its global footprint
resulted in international sales of 70 aircraft during 2011,
compared with 66 in the U.S, the second consecutive year that
international aircraft deliveries exceeded domestic.
Total deliveries in 2011 were 136 aircraft, compared with 160 the
previous year as a result of the company's strategy to reduce
overall unit volume to focus on higher-performing M-Class aircraft
and to level-load the delivery pace to reflect market realities.
Still, 136 deliveries in 2011 were more than 50 percent above 90
new Piper aircraft delivered in 2009, demonstrating a continuing
upward trend since the world's dramatic economic downturn in
2008.
"Piper is pleased with where the company is today from a number of
perspectives. We have a much higher sales and support profile
around the world, a healthier backlog, the factory is performing
well, and our financial picture is stable and brightening,"
Caldecott added. "Our vision for the future calls for growing our
global presence, selling and supporting more airplanes, and getting
much more efficient at it."
Piper Altaire
But it wasn't all good news for Piper in 2011. In October, the
company suspended its Altaire jet program, resulting in the layoffs
of 150 employees at its Vero Beach, FL, facility. “Clearly,
the market for light jets is not recovering sufficiently and
quickly enough to allow us to continue developing the program under
the economic circumstances we face,” Caldecott said in a news
release in October. "However, going forward as a company, we will
step up product improvements for our turboprop and piston-powered
product lines. As a result, Piper will increase the number of
personnel dedicated to our sustaining engineering function,”
he added. “In addition, the company is initiating third-party
engineering and manufacturing services to preserve as much of our
talent pool and as many jobs as possible.”
Earlier in the year, it dropped the PiperSport LSA from its
lineup over a disagreement with the Czech manufacturer of the
airplane.