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.

FMI: www.piper.com