The significant drop in expected deliveries at Cessna Aircraft this year was bigger and sooner than predicted, says UBS analyst David Stauss in a research report. The company now expects to deliver 375 business jets, down significantly from previous estimates as the deteriorating economy has customers canceling and deferring orders.
There’s still risk in that number, however, Strauss said. Only 80 percent of those jets are sold, the company’s parent company, Textron, said yesterday on an earnings call with analysts and reporters. That implies deliveries could fall further, he said. “Cessna will likely have to aggressively push price to fill these slots.”
Cessna said Thursday it was cutting 4,600 jobs, including 4,000 in Wichita, as it brings production down.