interesting from today's news

. Cirrus Design

Corporation, which moved its world headquarters to Duluth, received F.A.A.

certification for manufacture of its SR-20 aircraft, is in the production mode

and is planning on increasing its employee to 400 from the current 145.

The current facility can handle production of about 350 aircraft a year and a

further expansion to increase production to the long term goal of 600 aircraft

annually is in the beginning stages of discussion.

Wow, could this mean the long-awaited
“production certificate” is in hand? That would

be significant. (At least worth a party…)

GB

Thanks for this post. But the lead sentence in it is really strange.
It starts with something that happened many years ago – moving the Cirrus “world hq” to Duluth – then adds the clause “received FAA certification for manufacture…” without making clear whether (a) this is something that happened in 1998, the basic certification for the plane, or (b) has just happened now, the long-awaited “production certificate.” If I were in my news-editor role I’d be asking the reporter, “What exactly are we trying to say here?” This must be a from a Duluth news outlet (why else the background clause on DLH?) but I wish they’d used verb tenses in a way that clarified when the FAA part of the story occurred.

Anyone have hard info? Jim Fallows {See annotation below}

. Cirrus Design
Corporation, which moved its world headquarters to Duluth [many years ago], received F.A.A.

certification [when??]for manufacture of its SR-20 aircraft, is in the production mode [as they’ve been since last year? or some new threshhold?]

and is planning on increasing its employee to >400 from the current 145. [much like I am “planning on” having a Cirrus of my own? Any time horizon here? Are they actually hiring these people?]

Ah, journalists.

. Cirrus Design

Corporation, which moved its world headquarters to Duluth, received F.A.A.

certification for manufacture of its SR-20 aircraft, is in the production mode

and is planning on increasing its employee to 400 from the current 145.

The current facility can handle production of about 350 aircraft a year and a

further expansion to increase production to the long term goal of 600 aircraft

annually is in the beginning stages of discussion.

sorry…here’s the source…

USA: Duluth School District, Minn., rated Baa1 - Moody’s.

02/10/2000
Reuters English News Service
© Reuters Limited 2000.

(Full text of press release provided by Moody’s Investors Service Inc.)

It’s a shame this item was not attributed and dated. However, it’s clearly old news:

employee to >400 from the current 145.

Cirrus already employs over 300 people (335 according to the latest newsletter). So the news item must have been written some time ago.

The latest newsletter says that production is now running at one plane every five (working) days, and is still expected to reach one plane per day later this year. That’s good news for high-numbered position holders!

Sounds like old info — Cirrus Reported Employment at 312 people in Nov 19,1999 news release (total for all facilities - but majority are in Duluth) – doesn’t sound like only 145 would be in Duluth as stated in article. Maybe you need to check the date on that release???

Bernie #296

It’s a shame this item was not attributed and dated. However, it’s clearly old news:

employee to >400 from the current 145.

Cirrus already employs over 300 people (335 according to the latest newsletter). So the news item must have been written some time ago.

The latest newsletter says that production is now running at one plane every five (working) days, and is still expected to reach one plane per day later this year. That’s good news for high-numbered position holders!

Sounds like old info — Cirrus Reported Employment at 312 people in Nov 19,1999 news release (total for all facilities - but majority are in Duluth) – doesn’t sound like only 145 would be in Duluth as stated in article. Maybe you need to check the date on that release???

Bernie #296

It’s a shame this item was not attributed and dated. However, it’s clearly old news:

employee to >400 from the current 145.

Cirrus already employs over 300 people (335 according to the latest newsletter). So the news item must have been written some time ago.

The latest newsletter says that production is now running at one plane every five (working) days, and is still expected to reach one plane per day later this year. That’s good news for high-numbered position holders!

The article was doubtless written for the municipal bond market which is always interested in the economic progress of an area (such as the Duluth School District) so that its bondholders can evaluate credit/default risk. The market’s appetite for this data is more acute for a lower-grade bond, such as Duluth SD’s.

Sorry fellows, the language of our business is always arcane, and in this instance misleading! They are clearly not referring to the Production Certificate (a credit analyst wouldn’t even know/care what that is). Rather they are trying to convey that this Duluth-headquartered start-up has “grown legs” and is now producing planes and potentially adding to the municipal tax base.

. Cirrus Design

Corporation, which moved its world headquarters to Duluth, received F.A.A.

certification for manufacture of its SR-20 aircraft, is in the production mode

and is planning on increasing its employee to 400 from the current 145.

The current facility can handle production of about 350 aircraft a year and a

further expansion to increase production to the long term goal of 600 aircraft

annually is in the beginning stages of discussion.

sorry…here’s the source…

USA: Duluth School District, Minn., rated Baa1 - Moody’s.

02/10/2000
Reuters English News Service
© Reuters Limited 2000.

(Full text of press release provided by Moody’s Investors Service Inc.)

here’s the context…

don’t know if the 300 number was Duluth and Grand Forks or just Duluth…

either way first I’ve heard of expansion to 600…

LOCAL ECONOMIC STABILISATION AND DIVERSIFICATION; TREND OF TAX BASE GROWTH

The district primarily serves the City of Duluth (rated A1) which has

experienced a sustained trend of tax base growth after a decade of erosion.

Moody’s expects this steady growth to continue. The city’s successful use of

TIF financing has attracted new manufacturing and industry which serve to

diversify the economy and broaden the labour force. The Northwest Airlines

Aircraft Maintenance Facility which opened in 1996 and employs 350, is expected

to result in spin-off development of another 500 jobs. Cirrus Design

Corporation, which moved its world headquarters to Duluth, received F.A.A.

certification for manufacture of its SR-20 aircraft, is in the production mode

and is planning on increasing its employee base to 400 from the current 145.

The current facility can handle production of about 350 aircraft a year and a

further expansion to increase production to the long term goal of 600 aircraft

annually is in the beginning stages of discussion. Duluth continues to serve as

a regional healthcare and retail centre bolstered by the presence of a state

university campus. While the labour force has shown consistent growth over the

decade, unemployment levels continue to exceed the state’s. The trend of

population decline since 1960 has moderated.

MANAGEABLE DEBT POSITION; LIMITED BORROWING NEEDS

While debt burden at 6.0% is in the high moderate range, the district’s

direct debt level of 1.4% is easily manageable with debt service claiming less

than 5% of the operating budget. The majority, 76%, of the burden is

attributable to the issuance of underlying units, primarily the City of Duluth

which has issued heavily for economic development and diversification. The

. Cirrus Design

Corporation, which moved its world headquarters to Duluth, received F.A.A.

certification for manufacture of its SR-20 aircraft, is in the production mode

and is planning on increasing its employee to 400 from the current 145.

The current facility can handle production of about 350 aircraft a year and a

further expansion to increase production to the long term goal of 600 aircraft

annually is in the beginning stages of discussion.

sorry…here’s the source…

USA: Duluth School District, Minn., rated Baa1 - Moody’s.

02/10/2000
Reuters English News Service
© Reuters Limited 2000.

(Full text of press release provided by Moody’s Investors Service Inc.)

here’s the context…

don’t know if the 300 number was Duluth and Grand Forks or just Duluth…

either way first I’ve heard of expansion to 600…

LOCAL ECONOMIC STABILISATION AND DIVERSIFICATION; TREND OF TAX BASE GROWTH

The district primarily serves the City of Duluth (rated A1) which has

experienced a sustained trend of tax base growth after a decade of erosion.

Moody’s expects this steady growth to continue. The city’s successful use of

TIF financing has attracted new manufacturing and industry which serve to

diversify the economy and broaden the labour force. The Northwest Airlines

Aircraft Maintenance Facility which opened in 1996 and employs 350, is expected

to result in spin-off development of another 500 jobs. Cirrus Design

Corporation, which moved its world headquarters to Duluth, received F.A.A.

certification for manufacture of its SR-20 aircraft, is in the production mode

and is planning on increasing its employee base to 400 from the current 145.

The current facility can handle production of about 350 aircraft a year and a

further expansion to increase production to the long term goal of 600 aircraft

annually is in the beginning stages of discussion. Duluth continues to serve as

a regional healthcare and retail centre bolstered by the presence of a state

university campus. While the labour force has shown consistent growth over the

decade, unemployment levels continue to exceed the state’s. The trend of

population decline since 1960 has moderated.

MANAGEABLE DEBT POSITION; LIMITED BORROWING NEEDS

While debt burden at 6.0% is in the high moderate range, the district’s

direct debt level of 1.4% is easily manageable with debt service claiming less

than 5% of the operating budget. The majority, 76%, of the burden is

attributable to the issuance of underlying units, primarily the City of Duluth

which has issued heavily for economic development and diversification. The

YES…

employee numbers are off …300 at Duluth currently…

Looks like they may be looking at a second building…just my opinion.