Textron Aviation revenues halved YoY in second quarter
Textron Aviation revenues of $747m in the second quarter of this year were down $376m compared with the same period of 2019, the Wichita-based OEM reported.
Although Textron restarted production in early June, the pandemic’s impact is not going unnoticed, said the company in its latest financial results posted today (July 30th).
Textron said the $371m reduction in revenue is mainly due to lower Citation jet sales of $178m reflecting a decline in demand related to the pandemic. It also reflected, to a lesser extent, delays in the acceptance of aircraft related to Covid-19 travel restrictions and lower aftermarket volume of $120m.
Textron Aviation delivered 23 jets during the quarter, down from 46 in the same period of 2019 , and 15 commercial turboprops, down from 34 last year. The backlog at the end of the second quarter was $1.4bn. Segment loss was $66m in the second quarter, down from $105m of profit last year. Textron said this is largely due to a reduction in volume, but also includes $53m of idle facility expenses during lockdown.
As a whole Textron Inc. reported a second quarter net loss of $0.40 per share, compared with income of $0.93 per share in the second quarter of 2019. Adjusted net income, a non-GAAP (Generally Accepted Accounting Principles) measure, was $0.13 per share for the second quarter of 2020.
“Our defence businesses performed extremely well with both revenue growth and strong operating performance in the quarter, while our commercial businesses worked diligently to reduce costs and mitigate the impacts of temporary plant closures,” said Textron chairman and CEO Scott C. Donnelly. “The outstanding efforts of our teams in response to the challenging conditions arising from the pandemic drove strong cash performance and positive adjusted earnings in the quarter.”