Textron Inc., the maker of Cessna
business jets and Bell helicopters, said third-quarter profit
fell 37 percent because of lower aircraft sales.
Profit from continuing operations declined to $47 million,
or 34 cents a share, from $75 million, or 55 cents, a year ago,
Textron said in a statement. Sales at the Providence-based company fell to $2.24 billion from $2.49 billion.
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Earnings were dragged down by a 31 percent drop in sales of
Citation, Cessna and Caravans. Over the past three years, Chief
Executive Lewis Campbell has fired at least 9,400 employees and
closed 39 factories as sales have fallen. In March, the company
fired 1,200 Cessna employees. Textron said today 2003 profit
would be better than forecast because of the cost cuts.
Profit this year will be between $2.60 a share and $2.70 a
share, higher than the range of $2.40 to $2.60 the company gave
in July. Fourth-quarter profit on the same basis will be between
71 cents and 81 cents, Textron said in a statement.
Excluding expenses of 25 cents a share to fire employees and
redeem $500 million in preferred shares, third-quarter profit was
59 cents a share. On that basis, which doesn’t conform with
generally accepted accounting principles, the company beat its
forecast made in July for profit of as much as 52 cents a share.
The average third-quarter estimate of analysts surveyed by
Thomson Financial was 48 cents.
Textron in August sold its OmniQuip business, which made
backhoes and lifting equipment used in construction. Including
results from that business, Textron said net income fell to
$47 million, or 34 cents a share, from $71 million, or 51 cents.
Bloomberg News
