PROVIDENCE – Textron Inc. reported net income of $153 million for its second quarter, a 13.6 percent decline from $177 million a year earlier. Earnings per diluted share for the quarter were 57 cents, a drop from 65 cents in the 2016 second quarter. The earnings decline came despite a 2.6 percent increase in revenue for the manufacturer to $3.6 billion.
“Revenues were up in the quarter primarily driven by the Arctic Cat acquisition,” said Textron Chairman and CEO Scott C. Donnelly. “We saw strong performance at Bell and were encouraged by the continued strengthening in commercial helicopter demand.”
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Year to date, Textron reported $254 million in profit, a 22.3 percent decline year over year.
Segment highlights
The filing said that Textron Aviation revenue declined $25 million in the second quarter due to lower military and commercial turboprop volume. Segment profit for Textron Aviation declined $27 million year over year.
Bell revenue increased $21 million year over year. The report said that Bell revenue increased this quarter due to an increase of deliveries of H-1s.
Despite a $109 million increase in revenue due to Textron’s acquisition of Artic Cat, the company experienced a $17 million decline in the Industrial segment profit. The filing said that the company expected these losses as part of its integration plan.
Textron Systems experienced a $10 million decline in revenue and an $18 million drop in profit, “primarily due to lower volumes in the Weapons and Sensors, and Unmanned Systems product lines.”
Company outlook
Textron confirmed its guidance for full-year earnings per share of $2.22 to $2.45, while at the same time reiterating its operating cash flow estimate from continuing manufacturing group operations of $1.04 billion to $1.14 billion.
Chris Bergenheim is the PBN web editor.
