Textron nets $159M profit in Q3 on 7.2% revenue increase

Textron reported net income of $159 million in the company's 2017 third quarter, a $262 million decline from the third quarter of 2016. Above, the 407GXP from Bell Helicopter. / COURTESY BELL HELICOPTER

PROVIDENCE – Textron Inc. reported net income of $159 million for the third quarter, a 62.2 percent decline from the same 2016 period, even as revenue increased 7.2 percent year over year to $3.5 billion for the multi-industry manufacturer. As a result of the profit drop, diluted earnings per share fell to 60 cents from $1.55.

The profit decline from 2016 is due to a settlement Textron reached with the Internal Revenue Service Office of Appeals for the tax years 1998 to 2008, which added a $319 million benefit to the company in the third quarter of 2016. However, earnings before taxes, interest and special charges or benefits fell 4.8 percent in the fiscal 2017 third quarter from the same 2016 period to $295 million.

“Growth in the third quarter [revenue] was the result of strong commercial demand at Bell, increased deliveries at Textron Systems and higher revenues at Industrial due to the acquisition of Arctic Cat,” said Textron Chairman and CEO Scott C. Donnelly.

Segment results:

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  • Revenue for Textron Aviation declined 3.7 percent to $1.2 billion for the three months ended Sept. 30, while profit for the segment declined 7 percent to $93 million.
  • Revenue for Bell increased 10.6 percent to $812 million. Profit for the segment increased 9.3 percent to $106 million.
  • Textron Systems revenue increased 10.9 percent to $458 million even as net income declined 9.1 percent year over year to $40 million.
  • The company’s Industrial segment revenue increased 17.6 percent to just over $1 billion, while profit declined 25.8 percent from the third quarter of 2016 to $49 million. The revenue increase was attributed to the acquisition of Arctic Cat.

Chris Bergenheim is the PBN web editor.

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