TEXTRON INC. reported its fourth-quarter and full-year earnings on Wednesday. Deliveries of the V-22 helicopter fell short in the fourth quarter, with four delivered compared with eight in the 2015 fourth quarter.
PROVIDENCE – Textron Inc. is acquiring Arctic Cat Inc., which specializes in recreational vehicles, for $247 million, the manufacturer said in its fourth-quarter and full-year earnings release on Wednesday.
Textron Chairman and CEO Scott C. Donnelly said Arctic Cat is a “superb strategic fit” for the company.
“With our recent product introductions in the outdoor recreational vehicle market under the Stampede name, we believe Arctic Cat, one of the most recognized brands in the industry, provides an excellent platform to expand our portfolio, increase our distribution and create growth within our Specialized Vehicles business,” Donnelly said in a statement.
The company said 2016 profit and revenue climbed 38 percent and 2.7 percent, respectively.
Profit rose to $962 million, or $3.53 per share, last year, compared with profit of $697 million, or $2.50 per share, in 2015.
Revenue grew 2.7 percent to $13.8 billion in 2016 from $13.4 billion in 2015.
Revenue was boosted by higher volume in the Aviation, Textron Systems and Industrial segments. Aviation’s revenue climbed 2.1 percent to $4.9 billion. Textron Systems saw over-the-year growth of 15.5 percent to $1.8 billion, while the Industrial segment revenue grew 7.1 percent to $3.8 billion.
Bell helicopter was the only manufacturing category that saw an over-the-year decline, as revenue fell 6.2 percent to $3.2 billion.
The finance segment had a 6 percent decline in revenue over the year falling to $78 million.
Textron Systems and Industrial recorded over-the-year profit gains, at 44.2 percent to $186 million, and 8.9 percent to $329 million, respectively. The finance segment recorded the largest drop in profit over the year at nearly 21 percent, to $19 million from $24 million. Aviation fell 2.8 percent to $389 million, and Bell saw profit decline 3.5 percent to $386 million.
The company’s fourth-quarter performance overall was not as strong as the full year, with fourth-quarter revenue falling 2.5 percent to $3.8 billion from $3.9 billion in the year-ago quarter, and fourth-quarter profit dipping 5.3 percent to $214 million, or 78 cents per share, compared with $226 million, or 82 cents a share, in the prior-year quarter.
Fourth-quarter Industrial revenue grew 3.8 percent to $952 million, propelled by higher volume in Kautex and specialized vehicles, while profit was unchanged over the year at $73 million. Textron Systems saw a nearly 15 percent revenue increase to $532 million, primarily due to higher volume at marine and land systems, while profit increased $12 million to $53 million.
Bell fourth-quarter revenue fell 14.3 percent to $887 million, as 35 commercial helicopters were delivered, compared with 56 units last year, and four V-22s were delivered, compared with eight in the prior-year quarter; one fewer H-1 also was delivered – eight versus nine in the fourth quarter of 2015. Bell’s profit grew $2 million to $126 million, despite the revenue decline, due to “favorable performance,” the company said.
“Overall, revenues were down in the quarter but we were encouraged by increasing demand at Industrial and strong operating performance at Bell,” Donnelly said. “We also completed the first flight of our production Scorpion jet as we continued to ramp investment in this program to position us to compete for opportunities in 2017.”
Looking ahead, Textron is forecasting 2017 revenue of approximately $14.3 billion, a 4 percent increase, with earnings per share between $2.40 and $2.65.