PROVIDENCE – Textron Inc. expects its revenue from manufacturing to grow at a compound annual rate of between 8 and 10 percent from now until 2014, CEO Lewis B. Campbell told investors this week, Reuters reported.
Campbell also said Textron expects its troubled financial unit, Textron Financial Corp., to start making money for the company over the next half decade, Reuters reported.
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“With economic stabilization now becoming a trend, we think we have to spend some more time now and focus on improving the businesses,” Campbell said. “Most economists are saying this is going to be an ‘L,’ or a long, slow recovery, and we understand that.”
Campbell also said he does not expect the company’s Cessna division, which makes corporate jets, to see sales rise until 2011, when he forecasts a “modest recovery,” Reuters reported.
Textron’s stock price has been on an upswing since two Wall Street analysts boosted their outlooks for the company last week. Textron shares were trading at $19.87 a share at 10:13 a.m. on the New York Stock Exchange. Textron closed at $15.50 a share on Sept. 1.
Earlier this week, Textron reconfirmed its May forecast of a full-year profit of between 33 cents and 63 cents per share before special charges for the year. In July, the company lowered its full-year revenue forecast to $10.6 billion from the earlier projection of $11 billion.
Textron has cut about 10,000 employees, or roughly 23 percent of its work force, over the past year to deal with the economic downturn. The company said this week it is in the process of laying off another 56 workers at its Providence headquarters.
