Textron reports higher profit, revenue, in third quarter

TEXTRON REPORTED an increase in net income and revenue in the third quarter, driven by the acquisition of Beechcraft Corp., which makes airplanes. / COURTESY BEECHCRAFT CORP.
TEXTRON REPORTED an increase in net income and revenue in the third quarter, driven by the acquisition of Beechcraft Corp., which makes airplanes. / COURTESY BEECHCRAFT CORP.

PROVIDENCE – Textron Inc. reported higher net income and revenue in the third quarter, driven by the company’s recent acquisition of planemaker Beechcraft Corp.
Net income for the diversified manufacturer grew 60.6 percent in the third quarter to $159 million, or 57 cents per diluted share, compared with $99 million, or 35 cents per diluted share, during the same period last year.
Textron, whose brands include Bell Helicopter, Cessna, Hawker, Jacobsen, Kautex, Lycoming, E-Z-GO and Greenlee, had a revenue gain of 18 percent, reporting $3.4 billion in sales in the third quarter, compared with $2.9 billion during the same prior year period. Manufacturing revenue alone accounted for $3.4 billion versus $2.8 billion in the third quarter of 2013.
“Revenues at Textron Aviation, Industrial and Bell were up during the quarter, primarily reflecting the success of our new product investment and acquisition strategies,” Textron chairman and CEO Scott C. Donnelly said in a statement.
“Operationally, we achieved significant margin improvement in the quarter at Textron Aviation, reflecting higher volumes and better performance. Bell also had improved performance, leading to an increase in quarterly margins compared to last year,” he added.
Textron’s segments showed mixed revenue and profit results.
Textron Aviation showed a revenue increase, from $593 million in 2013 third quarter to $1.08 billion in the most recent quarter. The company credited the Beechcraft acquisition, saying it delivered 33 new jets in the quarter compared with 25 jets the year before.
Bell Helicopter also had higher revenue, going from $1.162 billion to $1.182 billion. Textron Systems’ revenue fell from $405 million to $358 million. The industrial division increased from $711 million to $785 million. The finance division also slipped in revenue from $33 million to $25 million.
Textron Aviation posted $62 million in profit, after a loss of $23 million in the prior year period. Bell Helicopter also posted a profit, climbing to $146 million from $131 million the prior year. Textron Systems’ profit dropped, however, going from $35 million in third quarter of 2013 to $27 million in this year’s third quarter.
The industrial division’s profit also dipped, going from $52 million in third quarter of 2013 to $53 million in 2014 third quarter. And the finance division profit went from $13 million to $5 million during the same period.
Textron also increased its 2014 earnings per share from continuing operations to a range of $2.05 to $2.15.

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