Textron reports second quarter results
Parent company of Cessna and Bell reiterates 2011 guidance
Textron has reported second quarter 2011
income from continuing operations of $0.29 per share, compared to income from
continuing operations of $0.27 per share in the second quarter of 2010. Last
year’s result included $0.02 per share in special charges.
Revenues in the quarter were $2.7 billion,
up $19 million from the second quarter of 2010. Segment profit was $196
million, up $35 million from the year-ago quarter.
“Second quarter results benefited from
good execution and cost performance at Bell
and Industrial,” said Textron chairman and chief executive officer Scott Donnelly.
“Cessna returned to an operating
profit, driven primarily by higher delivery and aftermarket volumes compared to
the first quarter,” Donnelly added.
Manufacturing cash flow before pension
contributions was $171 million during the second quarter compared to $186
million during last year’s second quarter. Textron’s consolidated net debt was
$4.4 billion, down $288 million from the end of the first quarter 2011.
Textron reiterated its forecast of 2011 earnings
per share from continuing operations of $1.00 to $1.15 and manufacturing cash
flow from continuing operations before pension contributions of between $800 –
Donnelly continued, “The demand
environment for commercial aircraft remained stable. Given current levels of
customer interest and order activity, we expect a significant pick-up in demand
in the second half of the year, similar to what we saw last year.”
In the first quarter of 2011, revenues for
Cessna increased $17 million, reflecting growth in aftermarket. Cessna
delivered 38 new Citation jets in the quarter, compared with 43 deliveries in
last year’s second quarter.
Segment profit increased $2 million on the
Cessna backlog at the end of the second
quarter was $2.5 billion, down $113 million from the end of the first quarter
In the first quarter 2011 for Bell revenues increased
$49 million in the second quarter from the same period in the prior year. Bell
delivered 9 V-22’s, 8 H-1’s and 22 commercial aircraft in the quarter compared
to 8 V-22’s, 3 H-1’s and 21 commercial units in last year’s second quarter.
Segment profit increased $12 million,
reflecting improved performance.
Bell backlog at the end of the second quarter was $7.0
billion, down $365 million from the end of the first quarter 2011, reflecting
Revenues at Textron Systems decreased $82
million, primarily due to lower unmanned aircraft system sales and lower
mission support volume.
Segment profit decreased $21 million,
primarily due to the lower volume.
Textron Systems backlog at the end of the
second quarter was $1.6 billion, down $60 million from the end of the first
Industrial revenues increased $58 million,
primarily due to a favorable foreign exchange impact. Segment profit increased
$4 million on the higher revenue.
Finance segment revenues decreased $23
million compared to the second quarter of 2010, primarily due to reduced
earnings on lower finance receivables.
Finance segment loss was lower by $38
million, primarily due to lower loan loss provisions and lower operating
expenses, partially offset by lower interest margin on the reduced portfolio of
Since the end of the first quarter 2011, non
accrual finance receivables decreased to $696 million from $836 million and
sixty-day plus delinquencies decreased to $302 million from $418 million.
Charge-offs in the second quarter were $38
million compared to $16 million in the first quarter of 2011.
Finance receivables ended the quarter at
$3.8 billion, down $317 million from the end of the first quarter 2011.