Friday, October 18, 2013

Textron 3rd-Quarter Net Drops on Lower Cessna Deliveries

Textron Inc.'s  third-quarter profit slid 34% as the aircraft and industrial product maker delivered far fewer Cessna planes than a year ago, and as labor disruptions hurt profitability at the Bell helicopter business.

The maker of Cessna planes, Bell helicopters and E-Z-Go golf carts has reported muted sales from prior-year levels, and the company's top line has missed Wall Street's expectations for five consecutive quarters.

Profit in the latest quarter also was muted, leading Textron to trim its full-year estimate. The company now sees a profit of $1.75 to $1.85 a share from continuing operations, down from the prior view of $1.90 to $2.10.

Chairman and Chief Executive Scott Donnelly said the reduced guidance was due to lower margins for the Bell business due to labor disruptions, as well as lower aircraft deliveries at Cessna.

Overall, Textron posted a profit of $99 million, or 35 cents a share, down from $151 million, or 51 cents a share, a year earlier. Revenue fell 3.2% to $2.9 billion.

Analysts surveyed by Thomson Reuters expected a profit of 47 cents a share on $2.97 billion in revenue.

Cessna revenue fell 24% as the company delivered 25 new Citation jets in the quarter, down from 41 a year ago. The unit swung to a loss of $23 million, reflecting the lower jet deliveries.

Bell revenue climbed 8.1%, though the segment's profit declined $34 million, hurt by labor disruptions.

Industrial and Textron systems revenue jumped 4.1% and 1.3%, respectively.

Shares, inactive premarket, closed Thursday at $27.52. The stock has risen 11% in 2013, underperforming the broader market.