MIRA INFORM REPORT

 

 

Report Date :

04.07.2014

 

IDENTIFICATION DETAILS

 

Name :

BEECHCRAFT CORPORATION

 

 

Formerly Known As :

HAWKER BEECHCRAFT CORPORATION

 

 

Registered Office :

10511 E. Central, Wichita, KS 67206

 

 

Country :

United States

 

 

Date of Incorporation :

21.09.1993

 

 

Legal Form :

Corporation – Profit 

 

 

Line of Business :

Subject designs, markets, and supports aviation products and services for businesses

 

 

No of Employees :

9,000+

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow But Correct

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

United States

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

D

 


 

United States ECONOMIC OVERVIEW

 

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $49,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012 the federal government reduced the growth of spending and the deficit shrank to 7.6% of GDP. Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that was designed to extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. In December 2012, the Federal Reserve Board (Fed) announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment drops below 6.5% or inflation rises above 2.5%. In late 2013, the Fed announced that it would begin scaling back long-term bond purchases to $75 billion per month in January 2014 and reduce them further as conditions warranted; the Fed, however, would keep short-term rates near zero so long as unemployment and inflation had not crossed the previously stated thresholds. Long-term problems include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits

Source : CIA

 

COMPANY NAME & ADDRESS

 

Company name:                        BEECHCRAFT CORPORATION

 

Address:                                   10511 E. Central, Wichita, KS 67206 - USA

 

Telephone:                                +1 316-676-7000

 

Fax:                                          +1 316-676-8867

 

Website:                                   www.beechcraft.com

 

 

Company details

 

Corporate ID#:                           2098523

 

State:                                       Kansas

 

Judicial form:                             Corporation – Profit 

 

Date incorporated:                      09-21-1993

 

Stock:                                       1,000 shares common

 

Value:                                       No par value

 

Name of manager:                      Worth W. BOISTURE

 

 

ACTIVITIES & OPERATIONS

 

History:

 

Name changed from HAWKER BEECHCRAFT CORPORATION on 02-26-2013.

 

IST

 

Business:

 

Beechcraft Corporation designs, markets, and supports aviation products and services for businesses, governments, and individuals worldwide.

 

The company offers Hawker 4000, a business jet; Hawker 900XP, a midsized business jet; Hawker 750, a light-midsize business jet; Hawker 400XP, a light jet for the fractional market and corporations; Hawker 200; Beechcraft Premier IA, a light jet; Beechcraft King Air 350i and Beechcraft King Air 250 aircraft; Beechcraft King Air C90GTx; Beechcraft Baron G58, a twin-engine piston aircraft; Beechcraft Bonanza G36, a single-engine piston; T-6 airplane; AT-6; and Beechcraft King Air 350ER.

The company also offers special-mission aircraft for militaries and governments; military and special mission solutions; and turn-key training systems, such as military training aircraft.

 

The company offers its products through representatives in Asia, the Asia Pacific, Central America, Mexico, the Caribbean, Europe, the Middle East, North America, and South America.

 

The company is based in Wichita, Kansas with operations in Salina, Kansas; Little Rock, Arkansas; and Chester, United Kingdom.

 

 

EIN:                  48-0135770

 

Staff:                 9,000+

 

 

Operations & branches:

 

At the headquarters, we find a large factory, warehouse and office.

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

On 03-14-2014, Textron Inc. announced it has closed its acquisition of

BEECH HOLDINGS, LLC, the parent of Beechcraft Corporation, and that it will bring together its Cessna business and Beechcraft to form a new segment called Textron Aviation.

Cessna and Beechcraft together produced about USD 4.6 billion in revenues during 2013.

 

 

Management:

 

Worth W. BOISTURE is the President and Director has been Chief Executive Officer of Beechcraft Corp. since February 15, 2013. Mr. Boisture serves as President of Hawker Beechcraft Defense Company, LLC. Mr. Boisture serves as Chairman of the Board at Hawker Beechcraft Inc and served as its Chief Executive Officer.

 

Mr. Boisture served as Chief Executive Officer and President of Hawker Beechcraft Notes Co., since March 2009 and as its Principal Financial Officer. He joined HBI in 2009. He serves as Chairman of Hawker Beechcraft Corporation. He served as Chief Executive Officer of Hawker Beechcraft Acquisition Company, LLC since March 23, 2009 and also served as its President. He served as an Interim Chief Financial Officer of Hawker Beechcraft Acquisition Company, LLC from January 25, 2011 to February 2011. He served as a Senior Advisor of The Carlyle Group. He serves as President of Intrepid Aviation LLC. He served as President of Netjets Aviation, Inc. from 2003 to January 11, 2007. He also served as President of NetJets Inc. from 2003 to January 2006. Mr. Boisture served as Consultant of NetJets Inc. since January 2006. He served in several senior capacities at General Dynamics Corporation from 1994 to 2003, including Executive Vice President and Group Executive of Aerospace division from July 1999 to April 11, 2003. Mr. Boisture also served as Chief Operating Officer and President of Gulfstream Aerospace Corporation of General Dynamics Corp. from December 1998 to March 2002. He served as an Executive Vice President of Gulfstream Aerospace Corp. from February 1994 to December 1998. Prior to Gulfstream Aerospace Corp., he served as President and Chief Executive Officer of British Aerospace of Corporate Jets Limited from October 1992 to 1993.

 

Mr. Boisture served as President and Chief Executive Officer of Butler Aviation from early 1990 to 1992. He served as President and Chief Executive Officer of The Carlyle Group. He served as an Executive Officer of CAE SimuFlite Inc. and Bombardier Aerospace Inc. He was honorably discharged as a Major after 11 years of service in Canada. He also served in senior capacities at Skyworld and Ports of Call Airlines, Simuflite Training International and Candair (predecessor company to Bombardier Aerospace). He serves as Chairman of the Board at Hawker Beechcraft Acquisition Company, LLC. Mr. Boisture served as the Chairman of Butler Aviation from early 1990 to 1992 and served as Chairman of The Carlyle Group. He has been a Director of Hawker Beechcraft Notes Co., since March 2009. He serves as a Director of the Association of Graduates U.S. Air Force Academy. He serves as a Trustee of the Falcon Foundation. He served as a Director of Triumph Aerostructures, LLC (Formerly Vought Aircraft Industries Inc.) from November 2008 to April 2009. Mr. Boisture served as a Director of Gulfstream Aerospace Corporation since February 1995 and Butler Aviation from 1990 to 1992. He served as a Director of The Carlyle Group. He is a Member of the World President Organization.

 

He earned his B.S. in Engineering Management from the U.S. Air Force Academy and his M.B.A. from the University of New Haven. Mr. Boisture graduated from the USAF Fighter Weapons School and the U.S. Navy Fighter Weapons School ("Topgun" school).

 

K.J. TJON is the Treasurer.

 

Subsidiaries

And partnership:

 

BEECH AIRCRAFT CORPORATION

RAPID AIRCRAFT PARTS INVENTORY AND DISTRIBUTION COMPANY LLC

HAWKER BEECHCRAFT GLOBAL CUSTOMER SUPPORT LLC

HAWKER BEECHCRAFT QUALITY SUPPORT COMPANY

HBC, LLC

 

 

FINANCIALS

 

Several changes are on the way.

 

TEXTRON, INC., the new ultimate parent company has founded

 

TEXTRON AVIATION INC.

1 Cessna Blvd, Bldg C1, Wichita, KS 67215

Incorporated in Kansas on 05-13-2014

ID# 7761240

Stock: 1,000 shares common at USD 1= par value

President, Director and CEO: Scott A. ERNEST

Directors: Eric SALANDER and Blake A. MEYEN

The goal is to bring together its Cessna business and Beechcraft Corporation.

 

 

Banks:  JPMorgan Chase Bank

           

 

 

 

 

LEGAL FILINGS

 

Legal filings & complaints:

 

There are several legal filings pending with various Courts.

 

 

Secured debts summary (UCC):   Numerous

 

 

COMPANY CREDIT HISTORY

 

Domestic credit history:

 

National Credit Bureaus gave a medium credit rating.

 

According to our credit analysts, during the last 6 months, domestic payments were made with an average of 10+ days beyond terms.

 

 

Our opinion:

 

Due to new shareholder and changes pending, we suggest a report on the ultimate parent company TEXTRON INC.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 59.72

UK Pound

1

Rs. 102.45

Euro

1

Rs. 81.54

 

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.