Textron profits rise 6.3% in 3Q

TEXTRON INC. reported a bottom line of $151 million, or 51 cents per diluted share, for the three months ended Sept. 29.
Posted 10/17/12

PROVIDENCE – Textron Inc. – parent of Bell Helicopter, Cessna Aircraft Company and Textron Systems – saw its profits increase by 6.3 percent to $151 million during the third quarter of 2012, the company reported Wednesday.

The aircraft maker reported a bottom line of $151 million, or 51 cents per diluted share, for the three months ended Sept. 29, up from $142 million, or 47 cents per diluted share, for the same period in 2011.

Profits for the company’s manufacturing segment were $254 million, a 2.3 percent decrease from the three months ended Oct. 1, 2011.

Third-quarter 2012 manufacturing cash flow - before pension contributions - totaled $153 million compared with $339 million during the same period in 2011. The company contributed $16 million to its pension plans during the three months ended Sept. 29.

“Third quarter results reflected strength in our helicopter and industrial units, favorable liquidation activity in our finance portfolio and good execution at Cessna in an environment of weak business jet demand, partially offset by lower overall volumes in our Textron Systems segment and charges associated with our new fee-for-service unmanned aerial systems programs,” Textron Chairman and CEO Scott C. Donnelly said in prepared remarks.

“Through the first three quarters of the year, we have had strong results at Bell, Industrial and Finance relative to our original EPS outlook,” said Donnelly, adding that based on the performance in the first three quarters, the company is raising its full-year earnings per share guidance.

Revenue at Cessna increased $7 million, reflecting higher used aircraft sales, which offset the decline in new jet orders. Cessna delivered of 41 new Citation jets in the quarter, compared with 47 during the second quarter of 2011.

A segment profit of $30 million was down $3 million from a year ago. Backlog at the end of the second quarter was $1.3 billion, down $196 million from the end of the second quarter 2012.

Bell revenue increased $181 million in the three months ended Sept. 29 from the same period in 2011. This revenue rise was primarily due to the delivery of 46 commercial helicopters compared with 26 units in last year’s third quarter, according to the company. The Bell section also delivered 11 V-22s and 5 H-1s during the quarter.

Bell’s segment profit increased $22 million, reflecting higher volumes and the segment’s backlog at the end of the second quarter was $6.3 billion, down $434 million from the second quarter of 2012.

The company lost ground with Textron Systems, which saw revenue drop $62 million between 2011 and 2012, primarily due to lower volumes. Segment profit dropped $26 million, reflecting charges associated with new fee-for-service unmanned aerial system contracts and lower volumes, according to the company.

In the three months ended Sept. 29, Textron’s industrial revenue increased $28 million due to higher volumes across most the golf and turn and automotive businesses, though the company release added that the increased revenue was partially offset by unfavorable foreign exchange rates.

During the third quarter, Textron’s finance segment revenue increased $32 million versus the third quarter of 2011. The segment posts a profit of $28 million during the quarter, compared to a loss of $24 million during the same period in 2011.

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