Textron reports decline in profit, revenue in first quarter

TEXTRON INC. reported lower revenue and profit in its first-quarter earnings release on Wednesday. Pictured is a Citation Sovereign+ jet. The company delivered only one more jet this quarter than in the year-ago quarter, 35 compared with 34. / COURTESY CESSNA AIRCRAFT CO.
TEXTRON INC. reported lower revenue and profit in its first-quarter earnings release on Wednesday. Pictured is a Citation Sovereign+ jet. The company delivered only one more jet this quarter than in the year-ago quarter, 35 compared with 34. / COURTESY CESSNA AIRCRAFT CO.

PROVIDENCE – Textron Inc., the maker of Bell helicopter and Citation jets, reported a 32.7 percent decline in net income and a 3.4 percent decrease in revenue in the 2017 first quarter.

The manufacturer said Wednesday that net income fell to $101 million, or 37 cents per diluted share, from $150 million, or 55 cents per share, in the year-ago quarter.

Revenue dropped to $3.1 billion from $3.2 billion in the first quarter of 2016.

While profit and revenue decreased year over year, Textron Chairman and CEO Scott C. Donnelly said the quarterly results “were consistent with our expectations.”

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“We are continuing to execute our restructuring plan while maintaining our focus on new product investment and the integration of acquired businesses, all of which will have a positive impact on our long-term growth outlook,” Donnelly said in a statement.

Among the four manufacturing segments, all but Bell experienced declines in profit over the year, and Bell only had a slight increase in profit at 1.2 percent, to $83 million, due to improved performance. However, Bell had a 14.4 percent decline in revenue, to $697 million, due to fewer deliveries of commercial helicopters (27 compared with 30), six deliveries of V-22s, the same as last year, and three H-1s, compared with 10 last year.

Textron Aviation saw profit plunge nearly 51 percent to $36 million due to lower volume, while revenue fell 11.1 percent to $970 million, due to lower military and commercial turboprop volumes. The aviation unit delivered 35 new Citation jets, one more than last year, and 12 King Air turboprops, which is 14 fewer than during last year’s first quarter, as well as two Beechcraft T-6 trainers, seven less than last year.

Textron Systems experienced a 31 percent decrease in profit to $20 million, due to unfavorable performance at marine and land systems, although revenue rose 28.4 percent, to $416 million, due to higher volume at weapons and sensors, as well as marine and land systems.

Industrial’s profit fell 16.5 percent to $76 million – unfavorable performance including the operating results of Arctic Cat, which was purchased for $247 million on March 6, dragged down net income in this segment. Revenue climbed 4.2 percent to $992 million, due to the effects of acquisitions and higher volume at Kautex, its automitive supply division in Germany.

Finance saw profit fall to $4 million from $5 million, and revenue decrease to $18 million from $20 million.

The company said it is adjusting its earnings guidance after the closing of the Arctic Cat acquisition last month. It now expects earnings per share between $2.22 and $2.45 for all of 2017.

Lori Stabile is the PBN Web Editor. 

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