““CEOs go to their vacation homes just after companies report favorable news, and CEOs return to headquarters right before subsequent news is released. More good news is released when CEOs are back at work, and CEOs appear not to leave headquarters at all if a firm has adverse news to disclose. When CEOs are away from the office, stock prices behave quietly with sharply lower volatility. Volatility increases immediately when CEOs return to work.” —David Yermack, a New York University finance professor, whose recently released study shows a correlation between when CEOs take their private jets on vacation and movements in their companies’ stock price ”
A Mixed Sales Report from Hawker Beechcraft
Activity in the second quarter of this year raised the order backlog at Hawker Beechcraft to a record $5.1 billion, roughly double what it was at this time last year. However, the purchase of Raytheon's aircraft division by GS Capital Partners and Onex Partners for $3.3 billion cash led to an operating loss of $36.6 million.
Sales for the second quarter were down 10 percent from last year to $701 million, though the manufacturer delivered two more aircraft (109 jets, turboprops and piston airplanes) in the latter period. The mix of aircraft likely hurt the cause, as the company delivered only 30 jets, six fewer than in the same period last year.
The company did not deliver any Hawker 4000s in the quarter. However, the future looks bright for Hawker Beechcraft, as the value of orders rose more than 300 percent from a year ago, to $1.9 billion. The increase stemmed partly from NetJets Europe's order for 32 Hawker 4000s.
Meanwhile, the Hawker 750 made its first flight on August 23 and the Hawker 900XP received FAA certification the next day.