PROVIDENCE – Textron Inc. reported a $563 million net income for the third quarter, or $2.26 per diluted share, a 254 percent increase from a $159 million profit in the third quarter of 2017, or 60 cents per diluted share, the company reported Thursday.
The increase in company profit year over year for the quarter was largely due to a $410 million after-tax gain from the sale of its Tools & Test Equipment product line.
Segment profits declined $50 million year over year to $245 million.
The Textron Aviation segment profit increased $6 million year over year to $99 million. The Bell segment also posted year-over-year profit gain, increasing $7 million to $113 million. Meanwhile, Textron Systems third-quarter profits declined $11 million year over year to $29 million, while the company’s Industrial segment profit declined $48 million to $1 million. The company’s finance segment profit declined $4 million year over year to $3 million.
Company revenue for the quarter declined 8 percent year over year, or $284 million, to $3.2 billion from $3.5 billion. Every segment of the company reported a decline in revenue year over year.
The largest segment revenue declines were in the company’s Industrial segment, which declined $112 million year over year to $930 million, and the company’s Textron Systems segment, which declined $106 million to $352 million.
The Industrial segment revenue decline was attributed to the company’s sale of the Tools & Test Equipment product line. The revenue drop-off at Textron Systems was attributed to a decline in Tactical Armoured Patrol Vehicle deliveries at Textron Marine & Land Systems and lower volume in the company’s Simulation, Training & Other product line.
Bell reported a revenue decline of $42 million year over year to $770 million, while Textron Aviation reported a revenue decline of $21 million in the third quarter to $1.1 billion. The decline at Bell was attributed to commercial mix. The segment delivered 43 commercial helicopters in the quarter, a four-helicopter increase year over year.
The smallest revenue decline of the four segments, at Textron Aviation, was partially attributed to lower volume. The segment delivered 41 jets in the quarter and 43 commercial turboprops.
“Revenues were lower in the quarter, largely reflecting declines at Industrial and Textron Systems,” said Textron Chairman and CEO Scott C. Donnelly in a statement. “Operationally, we achieved margin improvements at Aviation and Bell, reflecting strong execution within those segments.”
The company also reported it returned $468 million to shareholders through share repurchases in the third quarter, a 284 percent increase from $122 million in the third quarter of 2017.
Chris Bergenheim is the PBN web editor. Email him at Bergenheim@PBN.com.
