Textron Q2 Profit Declines Amid Lower Business Jet Deliveries - Update

(RTTNews) - Industrial conglomerate Textron, Inc. (TXT) Wednesday said second-quarter profit declined from the previous year, as revenues dropped 6 percent amid lower business jet deliveries. Yet, earnings topped Wall Street estimates. The firm backed its full year earnings view.

Textron Chairman and CEO Scott Donnelly said, ''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. On the other hand, business jet demand continued to be soft."

Net income decreased to $113 million or $0.40 per share from $172 million or $0.58 per share in the prior-year period.

On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.38 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues declined to $2.84 billion from $3.02 billion, primarily reflecting lower business jet deliveries. Analysts had consensus revenue estimate of $3.01 billion for the quarter.

Revenues at Cessna decreased 27 percent to $560 million, as delivery of new Citation jets fell to 20 from 49 in last year's second quarter. Donnelly believes that the cost, production and pricing actions taken are the right actions to support future growth at Cessna.

Bell revenues decreased 3 percent to $1.025 billion. The division delivered 44 commercial helicopters in the quarter, compared to 47 units last year. Bell delivered 9 V-22 and 6 H-1 aircraft in the quarter, flat with the prior year.

Revenues at Textron Systems increased 8 percent to $422 million, primarily due to higher volumes in the Unmanned Aircraft Systems and Weapons and Sensors product lines.

Industrial revenues increased 6 percent to $801 million reflecting higher volumes and an increase from acquisitions.

Textron confirmed its outlook for earnings per share from continuing operations for 2013 in the range of $1.90 to $2.10. Analysts expect the company to report earnings of $2.02 per share for fiscal 2013.

TXT, which closed at $27.73 on Tuesday, is down 1.2 percent in pre-market activity.