PROVIDENCE – Textron Inc. reported a $189 million profit for the first quarter of 2018, an $88 million increase year over year, or an 87 percent increase, according to a filing with the U.S. Securities and Exchange Commission Wednesday.
The company announced the sale of its Tools & Test business to Emerson Electric Co. for $810 million, including the following brands: Greenlee, Greenlee Communications, Greenlee Utility, HD Electric, Klauke, Sherman+Reilly, and Endura.
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Tools & Test is headquartered in Rockford, Ill., has 2,300 employees with 11 manufacturing locations around the world and 2017 sales of $470 million, according to Emerson Electric.
Textron expects to finish the sale by the third quarter of 2018.
The company also announced its board of directors authorized a buyback of 40 million shares of the company’s common stock. The buybuck is expected to be at least partially funded by the sale of the Tool & Test business.
The company reported a $3.3 billion revenue for the first quarter, a 6.5 percent increase from the $3.1 billion revenue in the first quarter of 2017.
Diluted net income per share for the first quarter was 72 cents, compared with 37 cents one year prior.
Textron had a segment profit increase in three of four segments, with a $36 million increase for its Textron Aviation division and a $30 million increase in its Textron Systems segment.
Revenues increased for all segments except the Textron Systems segment, which the company said declined after it discontinued sensor-fuzed weapon production in 2017.
Textron Aviation profit increased from $36 million to $72 million in one year due to higher prices, and “favorable volume and mix” and performance.
The company’s Bell segment revenue increased 8 percent year over year, a $752 million increase, due to higher military sales volume, according to the company, offsetting a decline in commercial revenue. The segment sold 46 commercial helicopters in the first quarter, compared with 27 last year. Military sales volume increased as well, the company noted.
“Increased revenues reflected growth at Industrial, Bell and Textron Aviation, with lower revenues at Textron Systems, consistent with our expectations,” said Textron Chairman and CEO Scott C. Donnelly in a statement. “Operationally, we achieved significant margin improvements at Textron Aviation and Textron Systems over this quarter last year and sustained margin strength at Bell, reflecting strong performance in these segments.”
Chris Bergenheim is the PBN web editor.
