Textron 2Q results strong as board <br>increases dividend

TEXTRON Chairman, CEO and president Lewis B. Campbell reported strong results across the company's four business units today. /
TEXTRON Chairman, CEO and president Lewis B. Campbell reported strong results across the company's four business units today. /

PROVIDENCE – Textron Inc. today reported net income for the second quarter of $210 million, nearly triple what it recorded a year ago, on revenue of $3.2 billion, growth of 14.7 percent.
“We experienced another strong quarter of solid revenue growth and improved profitability,” said Textron Chairman, President and CEO Lewis B. Campbell in a press release. “Demand for our products and further improvements from our Enterprise Management initiatives continue to drive enhanced results.”
Removing the effects of discontinued operations in both the 2006 and 2007 periods, the company recorded income of $215 million, an increase of 21.5 percent.
At the same time, the company announced that its board of directors had approved a two-for-one stock split, payable through a 100-percent stock dividend on Aug. 24 to shareholders of record as of close of business on Aug. 3. The company also approved a 19-percent increase in its annual common stock dividend to 92 cents per share, while declaring a quarterly dividend of 23 cents per common share to shareholders of record on Sept. 14. And finally, the board authorized a repurchase of up to 24 million (post-split) shares of common stock, replacing a previously announced repurchase program of 12 million shares.
The company reported that revenue from its Bell division increased 13.7 percent to $915 million on the quarter, driven by growth in U.S. government purchasing, although profit for the division fell 9.2 percent to $59 million. Its Cessna business showed a revenue increase of 19.7 percent – driven by growth in sales of its Citation jet – reaching $1.2 billion for the quarter, and profit of $200 million, an increase of 30.7 percent.
Industrial segment revenue totaled $878 million for the period ended June 30, an increase of 7.3 percent, while profit grew 9.3 percent to $59 million. And its finance division showed revenue growth of 24.5 percent to $239 million, generating income of $68 million, an increase of 21.4 percent.

Textron Inc. is an $11 billion multi-industry company operating in 32 countries with approximately 40,000 employees. More information is available at www.textron.com.

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