Textron: Pandemic impacts volume, lowering revenues
Lower volumes in the Citation and commercial turboprop sections are the primary reasons why Textron Aviation’s revenues are down over $400m compared to third quarter (Q3) 2019. Backlog was also down $100m at the end of Q3 compared with the same period last year, at $1.8 billion.
Revenues of $795m were down $406m from Q3 last year. The lower Citation jet volume of $234m and lower commercial turboprop volume of $83m reflect a decline in demand related to the pandemic said the Wichita-based OEM. Whilst lower aftermarket volume of $95m, relfects lower aircraft utilisation also in relation to Covid-19.
Textron delivered 25 jets in Q3 2020, down from 45 last year, and 21 commercial turboprops, down from 39 last year.
Segment loss was $29m in the third quarter, down from $104m of profit last year, primarily due to the lower volume and mix.
Textron chairman and CEO Scott C. Donnelly remained positive. Addressing Textron’s Q3 results webcast he said the company had been encouraged on the aviation side by the flow of aircraft orders as the sales team reacquainted themselves with customers post-pandemic.
Brian Foley, founder, Brian Foley Associates told CJI despite the rough year for aviation Textron as a company will be fine.
“Fortunately Textron is a diversified company, so everything isn’t totally dependent on its worst-performing fixed-wing aircraft Aviation division. While deliveries of these fell short, the Bell helicopter unit had higher revenues and profitability with consistent deliveries. The industrial and systems divisions remain sound. While Cessna deliveries were down 45% for the quarter year-over-year, I’m forecasting a net loss of 30% in deliveries for 2020 versus 2019 which is generally on par with the other manufacturers,” said Foley.