Textron reports lower revenue, higher profit in 2Q

TEXTRON INC. reported lower revenue and profit in its first-quarter earnings release on Wednesday. Pictured is a Citation Sovereign+ jet. The company delivered only one more jet this quarter than in the year-ago quarter, 35 compared with 34. / COURTESY CESSNA AIRCRAFT CO.
TEXTRON INC. reported lower revenue and profit in its first-quarter earnings release on Wednesday. Pictured is a Citation Sovereign+ jet. The company delivered only one more jet this quarter than in the year-ago quarter, 35 compared with 34. / COURTESY CESSNA AIRCRAFT CO.

PROVIDENCE – Textron Inc. reported lower revenue, partly due to fewer aircraft deliveries, but higher profit, in its second-quarter earnings release on Tuesday.
Revenue was $3.2 billion, a 7.4 percent decrease compared with the second quarter of 2014’s revenue of $3.5 billion. Profit was $167 million, or 60 cents per diluted share, compared with $144 million, or 51 cents per diluted share, during the year-ago quarter.
“Revenues were down in the quarter, as expected, but the company remains on track for growth in the second half of the year,” Textron Chairman and CEO Scott C. Donnelly said in a statement. “Furthermore, good margin results at Textron Aviation, Bell and Industrial contributed to solid overall financial performance in the quarter, despite the decrease in revenues.”
Among the four manufacturing segments, Textron Aviation and Bell reported lower revenue, while Textron Systems and Industrial reported higher revenue.
Textron Aviation, with $1.1 billion in revenue, a 5 percent decrease, had fewer deliveries of King Air turboprops in the second quarter at 30, compared with 2014 second quarter’s 34 deliveries.
Bell revenue decreased 24 percent to $850 million, mostly the result of lower aircraft deliveries and a $41 million impact from the settlement of the System Development and Demonstration phase of the Armed Reconnaissance Helicopter program in last year’s second quarter.

Textron Systems posted $322 million in revenue, a 14.2 percent increase, due to higher unmanned systems and land systems volumes, even though weapons and sensors volume had decreased, the company said.
Industrial revenue climbed 3.7 percent to $927 million, thanks to higher overall volume.
Finance segment revenue decreased 11.1 percent to $24 million.

Segment profit, which the company reported for its four manufacturing divisions along with the finance unit, increased 0.7 percent to $306 million.

Textron Aviation was the only segment to report a profit increase, at 214 percent to $88 million, due to improved performance.
The other segments, Bell, Textron Systems and Industrial, reported decreases of 28.4 percent to $101 million, 38.2 percent to $21 million and 8.5 percent to $86 million, respectively. The finance unit saw its operating profit increase to $10 million from $7 million.
Textron confirmed 2015 earnings per share from continuing operations guidance of $2.30 to $2.50 and its expectation for cash flow from continuing operations of the manufacturing group before pension contributions of $550 million to $650 million, with planned pension contributions of approximately $80 million.

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