Textron reports third quarter earnings
Bell Helicopter and Cessna Aircraft parent company reports third quarter 2011
Textron reported third quarter 2011 income
from continuing operations of $0.45 per share, compared to a loss from
continuing operations of $0.17 per share in the third quarter of 2010. Last
year’s result included $0.30 per share in special charges.
Total revenues in the quarter were $2.8
billion, up 13.5% from the third quarter of 2010, while manufacturing revenues
were up 15%. Segment profit was $236 million, up $124 million from the year-ago
“Third quarter results reflected good
execution and cost performance at Bell
and Cessna, including continued success in selling commercial aircraft in a
tough environment. We believe this reflects the strength of our brands and
investments we are making in new products, aftermarket services and sales
capabilities,” said Textron chairman and chief executive Scott C. Donnelly.
Manufacturing cash flow before pension
contributions was $339 million during the third quarter compared to $174
million during last year’s third quarter. Textron’s consolidated net debt was
$3.9 billion, down $500 million from the end of the second quarter 2011.
The company is now forecasting 2011 earnings
per share from continuing operations of $1.05 to $1.15. This forecast reflects
the impact of the company’s recent tender for its outstanding convertible
notes. Textron expects to record an approximate $0.08 per share special charge
in the fourth quarter as a result of the tender, with an offsetting benefit of
about $0.02 per share due to the impact of a lower diluted share count. The
company’s previous guidance of $0.90 – $1.00, assumed $0.24 per share in
special charges and an offsetting benefit from lower share count of $0.04 per
share. The company also confirmed its outlook for manufacturing cash flow from
continuing operations before pension contributions of $800 – $850 million.
Cessna reported third quarter results as revenues
have increased $236 million, reflecting higher jet volume. Cessna delivered 47
new Citation jets in the quarter, compared with 26 deliveries in last year’s
Segment profit increased $64 million
primarily due to higher volume, mix and favourable performance.
Cessna backlog at the end of the third
quarter was $2.2 billion, down $359 million from the end of the second quarter
Bell Helicopter reported third quarter
results as revenues have increased $69 million in the third quarter from the
same period last year. Bell delivered 9 V-22’s, 7 H-1’s and 26 commercial
aircraft in the quarter compared to 7 V-22’s, 5 H-1’s and 24 commercial units
in last year’s third quarter.
Segment profit increased $36 million,
reflecting improved performance.
Bell backlog at the end of the third quarter
was $6.4 billion, down $588 million from the end of the second quarter 2011,
reflecting military deliveries during the quarter, as well as a $781 million
dollar reduction in the backlog primarily to correct an error made in the
fourth quarter of 2009 which recorded as backlog the full value of a V-22
contract rather than Bell’s proportionate share.