Textron reports profit increase, sales decline in 3Q

TEXTRON INC.'S third quarter sales decreased, driven primarily by lower deliveries of the V-22 aircraft in the Bell Helicopter division. / COURTESY BELL HELICOPTER
TEXTRON INC.'S third quarter sales decreased, driven primarily by lower deliveries of the V-22 aircraft in the Bell Helicopter division. / COURTESY BELL HELICOPTER

PROVIDENCE – Textron Inc. reported an increase in profit, but a decline in revenue, driven primarily by lower deliveries of the V-22 aircraft in its Bell Helicopter division.
The manufacturer released its third quarter earnings report on Tuesday, showing profit of $176 million, or 63 cents per diluted share, compared with profit of $159 million, or 57 cents per share, a year ago, a 10.7 percent increase.
Segment profit was $312 million, an increase of $19 million, or 6.5 percent, compared with third quarter 2014.
Textron Aviation led the segments with $107 million in profit, a 72 percent increase, reflecting higher jet and military sales. The segment delivered 37 new Citation jets and 29 King Arthur turboprops in the quarter, compared with 33 Citations and 30 King Airs in last year’s third quarter.
Textron Systems reported profit of $39 million, a 44.4 percent increase, due mostly to higher weapons, sensors and unmanned systems volumes. The industrial segment had profit of $61 million, a 15 percent increase.
Bell’s profit declined 32 percent to $99 million. Bell delivered four V-22s and five H-1s in the quarter, compared with 12 V-22s and four H-1s last year. Forty-five commercial helicopters were delivered in the quarter, four more than third quarter 2014.
The finance division reported $6 million in profit, a $1 million increase.
Revenue totaled $3.2 billion, a decrease of 7.3 percent compared with third quarter 2014’s $3.4 billion.

“Revenues were down in the quarter, primarily driven by lower deliveries of V-22s at Bell, but we had solid revenue growth at Textron Aviation, Textron Systems and Industrial, reflecting our investments in new products and sales capabilities,” Textron Chairman and CEO Scott C. Donnelly said in a statement. “Furthermore, good margin results across our segments contributed to solid overall financial performance in the quarter, despite the decrease in revenues.”

The company revised its 2015 earnings per share to between $2.40 and $2.50 from $2.30 and $2.50.

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