Touts New Products, Continuing Innovation, Improved Bottom
Cirrus president and CEO Brent Wouters gave an upbeat assessment
of the company to the Cirrus Owners and Pilots Association (COPA)
Annual Migration Friday. Wouters said the jet program is
progressing, and that the company appears to have weathered the
recession in good shape with a marked improvement in the bottom
line over 2009.
Wouters said that general aviation is powerful. "Everyone has a
dream of flying, or going places" he said, but for business people
"It's not about just the airplane, it's about what the airplane
allows me to do."
Wouters said that while Cirrus continues to be focused on great
product, the overall strategy is "customer first, airplane second."
He said that the company continues to expand its markets, and is
doing a better job in the markets it already has. The reliability
of the airplane has improved 15% overall in the past three years,
and that a global parts provider has improved the dispatch
reliability by 70 percent. The company has added 15 flight training
centers, and that while it is not moving as quickly as they would
like, the jet program is making progress.
Wouters said that 50 percent of Cirrus' current volume is coming
from outside the U.S., most notably Latin America, Australia, and
China. He said that is particularly encouraging because in many
places, particularly in China, it is far more difficult to fly than
it is in the U.S. And, as is evidenced by the new SR22T, fuel
flexibility will be key to allowing Cirrus to enter those
The company is also beginning to penetrate the institutional and
fleet markets, Wouters said. He pointed to the recent purchase by
Purdue University of a fleet of Cirrus aircraft for training as an
example of that market penetration.
On the bottom line, Wouters said the financial foundation of the
company is strong. "In 2010, we're on a pace to deliver about the
same number of airplanes as 2009," he said. "But the net income
result ... the bottom line ... is $40 million better. We will have
half the deliveries of 2008, and we will be $80 million better on
the bottom line."
Wouters told the group no matter how the company is measured ...
"customer first, airplane second", innovation, penetration into new
markets ... that the financial support of the people buying the
airplanes make it all possible. And he reiterated that "It's not
just about the airplane, it's about what the airplane allows me to
do, and you to do. If we are here, and we are stable, and we have
great performance, we can continue to provide that for you over the
ANN provided a live webcast of the speech, and you can see it in
its entirety here.