Textron reports profit growth, revenue drop in 4Q, 2015

Textron Inc. Chairman and CEO Scott Donnelly said revenue was down in the fourth quarter, but company representatives were encouraged by the
Textron Inc. Chairman and CEO Scott Donnelly said revenue was down in the fourth quarter, but company representatives were encouraged by the "ramp-up of our new Latitude business jet." / COURTESY TEXTRON

PROVIDENCE – Textron Inc.’s profit rose in the fourth quarter and in 2015, while revenue slipped during the same periods, the company reported on Wednesday.
On a full-year basis, profit was $697 million, or $2.50 per diluted share, compared with $600 million, or $2.13 per diluted share, for the prior 12-month period. The manufacturer reported fourth-quarter profit of $226 million, or 82 cents per diluted share, for the period that ended Jan. 2, compared with profit of $212 million, or 76 cents per diluted share, in the same quarter a year ago.
Segment profit – the equivalent of operating profit – fell 5 percent to $378 million in the fourth quarter, but climbed 3.4 percent over the year, to $1.3 billion.
Among the manufacturing segments, Textron Aviation had the largest operating profit growth over the year, at nearly 71 percent, to $400 million due to improved performance, the company said. It was followed by Industrial, with a 7.9 percent increase to $302 million. Bell and Textron Systems saw segment profit fall, 24.4 percent to $400 million, and 14 percent to $129 million, respectively. The finance group saw a 3.4 percent segment profit increase over the year to $24 million.
The company made a larger profit on less revenue, with full-year revenue falling 3.3 percent to $13.4 billion. Fourth-quarter revenue fell 4.2 percent to $3.9 billion during the year-ago period.

All four manufacturing segments, with the exception of Industrial, had revenue declines in the fourth quarter compared with a year ago. The largest decline occurred in Textron Systems, which saw revenue dip 25.4 percent to $463 million, due to lower unmanned systems volume, the company said. Industrial, in comparison, had a 6.4 percent increase in the quarter to $917 million, thanks to higher overall volume and the impact of acquisitions, which were partially offset by a $50 million unfavorable impact from foreign exchange, the company said.

“While overall revenues were down in the quarter, we were encouraged by continued strong demand at Industrial, the ramp-up of our new Latitude business jet and the positive customer reception to our new Longitude and Hemisphere jets announced during November’s National Business Aviation Association Exhibition,” Textron Chairman and CEO Scott C. Donnelly said in a statement.
Textron is forecasting 2016 revenue of approximately $14.3 billion, a 6 percent increase, and earnings per share ranging from $2.60 to $2.80.
“Our outlook for 2016 reflects the success of our strategy of investing in both new product development and acquisitions,” Donnelly said.

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