PROVIDENCE – Textron Inc. recorded a $223 million profit in the third quarter of 2024, a decrease from the $269 million profit one year prior, with the company on Thursday partially blaming a strike at one of its subsidiaries for the lowered earnings.
The Rhode Island-based maker of Cessna planes and Bell helicopters posted earnings per diluted share of $1.18 compared with $1.35 one year prior.
Revenue totaled $3.43 billion in the quarter, a rise from $3.34 billion in the third quarter of 2023. It missed Wall Street revenue forecasts. Six analysts surveyed by Zacks Investment Research expected $3.51 billion in revenue.
About 5,000 unionized machinists at Textron Aviation in Wichita, Kan., walked off the job in late September after rejecting a contract offer from Textron. After negotiations, the members of the International Association of Machinists and Aerospace Workers ratified a five-year contract this week, ending the strike.
But the effects on Textron's bottom line will continue, according to Textron executives.
"The labor disruption adversely impacted our third-quarter results and we expect it to negatively affect fourth-quarter financials," said Scott C. Donnelly, Textron CEO and chairman.
Segment performance:
- Textron Aviation reported $1.3 billion in revenue in the quarter, the same as a year ago, due to delayed aircraft deliveries along with unfavorable performance from manufacturing inefficiencies associated with the labor disruption resulting from the strike. Textron Aviation delivered 41 jets in the quarter, an increase from 39 a year ago, and 25 commercial turboprops, down from 38 in last year’s third quarter.
- Bell segment revenue totaled $929 million, up $175 million in the third quarter of 2023. The improved numbers were in part because of higher military volume related to the future long-range assault aircraft. That offset lower volume on the V-22 Osprey tiltrotor military transport aircraft, the company said. There was also higher commercial volume.
- Textron systems revenue was $301 million, down $8 million from last year’s third quarter, largely due to lower volume. Segment profit of $39 million was down $2 million, compared with the third quarter of 2023.
- Industrial segment revenue was $840 million, down $82 million from last year’s third quarter, mainly due to lower volume and mix of $86 million, principally in the Specialized Vehicles product line.
