Textron reports profit, revenue increase in 3Q

TEXTRON reported a 139.2 percent jump in profit and 2.2 percent increase in revenue in the third quarter.
TEXTRON reported a 139.2 percent jump in profit and 2.2 percent increase in revenue in the third quarter.

PROVIDENCE – Textron Inc. reported a 139.2 percent jump in profit and 2.2 percent increase in revenue in the third quarter that ended Oct. 1 compared with the same period a year ago.
The manufacturer, in its earnings report released Thursday, said profit rose to $421 million, or $1.55 per share, compared with profit of $176 million, or 63 cents a share, a year ago.
The company said that during the third quarter, it recorded a tax benefit of $319 million, or 76 cents per share, related to a settlement of U.S. Internal Revenue Service audits, and also recorded a $115 million pre-tax restructuring charge – 27 cents per share, after tax – related to plans to realign the company’s businesses through employee reductions and facility consolidations. When those items are excluded, adjusted profit fell to 61 cents per share, 2 cents lower than the year-ago quarter.
Textron Chairman and CEO Scott C. Donnelly said the company “had good execution in the quarter with margin improvements at Systems and Bell. At Aviation, we continue to be encouraged by the strong market acceptance of the Latitude and progress on our new Longitude platform with a very successful first flight two weeks ago.”
Among the four manufacturing segments, Textron Aviation and Industrial experienced revenue growth of 3.4 percent and 7 percent, respectively, to $1.2 billion and $886 million. Aviation delivered 41 new Citation jets in the quarter and 29 King Air turboprops compared with 37 jets and the same amount of King Airs a year ago. Industrial increased its revenue as a result of acquired businesses and higher volume, according to the company.
Bell revenue fell 2.9 percent to $734 million, while Textron Systems’ revenue fell 1.7 percent to $413 million. Bell’s revenue fell due to fewer deliveries of commercial helicopters, as it sold 25 compared with 45 units last year. Textron Systems’ revenue was lower mainly because of decreased weapons and sensor volume, which was partially offset by higher revenue in marine and land systems.
Textron Systems and Industrial were the only manufacturing segments that recorded profit growth, at 12.8 percent to $44 million and 8.2 percent to $66 million, respectively. Textron Aviation saw profit fall $7 million to $100 million, and Bell’s profit dipped $2 million to $97 million.
Finance segment revenue grew $3 million to $20 million, while profit fell 50 percent to $3 million.

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