Textron reports $244M profit in second quarter

TEXTRON reported net income of $224 million in the second quarter of 2018, largely driven by a $50 million profit increase in the company's aviation segment. / COURTESY TEXTRON AVIATION
TEXTRON reported net income of $224 million in the second quarter of 2018, largely driven by a $50 million profit increase in the company's aviation segment. / COURTESY TEXTRON AVIATION

PROVIDENCE – Textron Inc. reported net income of $224 million in the second quarter, $71 million more than the $153 million the company reported in the second quarter of 2017, according to a filing from the company Wednesday. Total revenue for the diversified manufacturer increased 3.4 percent year over year to $3.7 billion for the period.

Earnings per share for the quarter were 87 cents, compared with 57 cents one year prior.

The company experienced revenue growth in three of four manufacturing segments and segment profit growth in half of its manufacturing segments year over year.

Textron Aviation profit increased $50 million from the 2017 second quarter to $104 million on revenue of $1.3 billion, which the company attributed to favorable volume, mix and pricing of the segment’s sales. The company’s Bell segment profit increased $5 million year over year to $117 million on sales of $831 million due to higher commercial sales volume and offset by lower military revenue.

- Advertisement -

Textron Systems profit declined $2 million year over year to $40 million, based on revenue of $380 million, while the company’s Industrial segment earnings also declined, to $80 million from $82 million on revenue of $1.2 billion.

In aggregate, segment profit increased $51 million year over year in the fiscal second quarter to $342 million.

The company’s Finance segment reported a $5 million profit, the same as the second quarter of 2017, on revenue of $17 million.

“Operationally, we saw continued strength in our execution with margin improvements at Aviation, Systems and Bell,” stated Textron Chairman and CEO Scott C. Donnelly. “We are encouraged by revenue growth resulting from improving commercial demand across many of our end markets.”

In its quarterly filing, the company said it expects a one-time gain of $400 million from a $810 million Tools & Test divestiture in the third quarter of 2018, a deal the company announced earlier this year.

The company said cash flow from operations for the manufacturing group increased 13.3 percent to $468 million in the quarter. The company also reported that, in the second quarter, it returned $571 million to its shareholders through share repurchases, compared with $143 million in the second quarter of 2017.

Chris Bergenheim is the PBN web editor.

No posts to display