Textron reports second quarter 2013
Textron, the owner of Cessna and Bell Helicopters, announced that total revenues in the second quarter of 2013 were $2.8 billion – down 6% from the same quarter in 2012 – primarily reflecting lower business jet deliveries.
Textron reports that segment profit was $213 million for the quarter, compared to $310 million in the second quarter of 2012, primarily reflecting lower business jet deliveries and $28 million in pre-tax severance costs recorded at Cessna, which were previously announced.
Manufacturing cash flow before pension contributions was a $362 million use of cash during the second quarter compared to $121 million of cash generated during last year’s second quarter. The company contributed $17 million to its pension plans during the second quarter.
“Despite weakness in European markets, we saw solid growth at Textron Systems and our Industrial businesses, as well as continued strong commercial orders at Bell,” said Textron chairman and CEO Scott Donnelly. Donnelly continued “On the other hand, business jet demand continued to be soft, but we believe the cost, production and pricing actions we took are the right actions to support future growth at Cessna.”
Textron confirmed its 2013 earnings per share from continuing operations guidance of $1.90 to $2.10 and that the company’s expectation for cash flow from continuing operations of the manufacturing group before pension contributions of about $400 million with expected pension contributions of about $200 million.
During the quarter, revenues at Cessna decreased $203 million, reflecting the delivery of 20 new Citation jets in the quarter compared with 49 in last year’s second quarter.
Cessna recorded a segment loss of $50 million in the second quarter compared to a profit of $35 million a year ago, reflecting the lower jet deliveries and $28 million in pre-tax severance costs.
Cessna backlog at the end of the second quarter was $1.01 billion, down $23 million from the first quarter of 2013.
Bell revenues decreased $31 million in the second quarter from the same period in the prior year, primarily reflecting the delivery of 44 commercial helicopters compared to 47 units in last year’s second quarter. Bell delivered 9 V-22 and 6 H-1 aircraft in the quarter, flat with last year’s second quarter deliveries.
Segment profit decreased $17 million, primarily reflecting an unfavorable mix and lower commercial aircraft deliveries.
Bell backlog at the end of the second quarter was $6.95 billion, down $137 million from the first quarter of 2013.