Textron profits rise despite selling fewer jets
Textron Aviation’s profits have increased by $41m (42%) in the past year despite selling fewer jets, due to “favourable pricing”.
In the group’s third quarter (Q3) 2022 results, Textron said it had delivered 39 jets in the quarter, down from 49 in Q3 last year, but profits increased by $41m to $139m. The company’s backlog grew by $524m in the quarter, bringing its total backlog to $6.4bn.
Revenues dipped by $14m to $1.2bn, largely due to lower Citation jet sales and pre-owned transactions. The company said this was partially offset by favourable pricing and higher aftermarket volume.
Scott Donnelly, chairman, president and CEO, Textron said the reason for the dip in turnover is due to supply chain challenges. He said: “We’ll continue to work to make deliveries and we’ll continue to work on that ramp as we go into 2023.”
He said that while supply chain challenges are affecting the revenue, the company “is in good shape in terms of labour”.
Textron is planning to use the extra cash from profits in an active repurchase of stock, having bought around $640m so far this year. The company’s helicopter division, Bell, delivered 49 helicopters in the quarter, up from 33 the year before, while profits dropped $20m to $85m due to lower volume and mix.
Earlier this month at NBAA-BACE 2022, Textron Aviation agreed a deal with flyExclusive for the purchase of 14 Cessna Citation business jets.
Textron Q3 results – at a glance:
- Revenue drops $14m to $1.2bn
- Profit up $41m to $139m
- 39 jets delivered, down from 49
- 33 commercial turboprops delivered, down from 35
- Backlog grew $524m to total of $6.4bn