Tuesday, March 17, 2009

S&P Mouthing Off On Private Jets

S&P earlier downgraded Textron and Textron Financial to BBB- which was not at all surprising. However, an amusing tidbit in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365ir report presents just how ingrained cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 sentiment against private jets is: if cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ultimate lagging indicator S&P is saying jets are a liability, it may be time to actually splurge for that Dassault you have had your eye on recently.
We believe cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 global economic slowdown and tight credit markets are causing a fairly rapid deterioration in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 business aviation market, resulting in order cancellations and deferrals. Therefore, we expect deliveries of new Cessna business jets to decline to around 375 in 2009 from 467 in 2008. Segment margins will likely decline to around 10%-12% from 16% in 2008, due to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 lower volumes and a higher proportion of lower-margin aircraft, especially cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Mustang very light jet. The company is taking actions to mitigate cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 lower profitability at Cessna, including reducing headcount and R&D spending. Backlog totaled $14.5 billion at cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 end of 2008, but net orders in 2009 will be much below recent levels and likely below deliveries.
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