Textron posts $92M Q2 loss on COVID-19 disruptions

PROVIDENCE – Textron Inc. reported a $92 million loss in the second quarter, or 40 cents per diluted share, the company on Thursday attributed to COVID-19 disruptions.

One year prior, the company earned a profit of $217 million, or 93 cents per diluted share.

Quarterly revenue totaled $2.5 billion, a decline from $3.2 billion a year prior.

Segment performance:

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  • Textron Aviation revenue declined 33.5% year over year to $747 million. Segment losses totaled $66 million for the quarter, a decline from $105 million one year prior. The segment delivered half as many jets than one year prior and more than half as many commercial turboprops. The decline was attributed to the effects of the COVID-19 pandemic.
  • Bell revenue increased 6.6% year over year to $822 million. Segment profit totaled $118 million, a 14.5% increase year over year. The increase in sales was driven by military purchases, the company said, offset by a decline in commercial volume,
  • Textron Systems revenue increased 5.8% to $326 million. Segment profit declined $12 million year over year to $37 million.
  • Industrial revenue declined 23.5% to $2.5 billion. Segment loss per quarter was $11 million, a decline from a profit of $76 million one year prior. The decline was said to be primarily due to temporary manufacturing facility closures due to COVID-19.

The company noted that it began a restructuring plan in June that would reduce operating expenses through headcount reductions, facility consolidations and other methods. The company said that its second quarter figures included severance and related costs of $51 million, asset impairment charges of $15 million and contract termination and other facility closing costs of $12 million for the quarter. 

“Our defense businesses performed extremely well with both revenue growth and strong operating performance in the quarter, while our commercial businesses worked diligently to reduce costs and mitigate the impacts of temporary plant closures,” said Textron Chairman and CEO Scott C. Donnelly. “The outstanding efforts of our teams in response to the challenging conditions arising from the pandemic drove strong cash performance and positive adjusted earnings in the quarter.”

Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.