PROVIDENCE – Textron Inc. (NYSE: TXT) today posted a 22.9-percent increase in second-quarter profit to $258 million from the year-ago $210 million on revenue that rose 21.1 percent to $3.92 billion. Diluted earnings per share rose to $1.02 from the 2007 second quarter’s 83 cents.

The results outpaced Textron’s performance in the first quarter of this year, when the company saw earnings rise 17.9 percent year-over-year to $231 million while revenue rose 18.7 percent to $3.52 billion. (READ MORE)

“We achieved 19-percent organic growth in our aerospace and defense businesses, as global demand remained very strong and led to another record level of backlog,” Textron Chairman, President and CEO Lewis B. Campbell said in a statement today. “Likewise, we had double-digit organic growth at E-Z-GO, where our new golf car has been well received, and Fluid & Power, where our energy-related products are in high demand.”

The combined backlog at the Cessna Aircraft Co., Bell Helicopter and Textron Systems divisions had reached $23.5 billion as of June 28, an increase of 6.8 percent since the end of the first quarter and 25 percent since beginning of the year.

“We see this trend continuing,” Rob Stallard, a New York-based analyst at Macquarie Research Equities, wrote in a research note today, according to Bloomberg News. Stallard, who rates Textron shares as “outperform,” added: “The outlook for business jets remains relatively robust, as there is no airline exposure here and probably some benefit from higher oil and commodities given the continued strong overseas demand.”

Among manufacturing divisions, Cessna Aircraft posted a segment profit of $262 million, a 31-percent increase from the 2007 second quarter, on revenue that rose 24.8 percent to $1.50 billion. Bell Helicopter posted a segment profit of $68 million, or nearly 10 times the year-ago $7 million, on revenue that rose 17.1 percent to $698 million. Textron Defense & Intelligence posted a segment profit of $67 million, up 28.8 percent from a year ago, on revenue that rose 65.5 percent to $528 million. But Textron Industrial (including E-Z-Go, Greenlee, Jacobsen, Kautex and the Fluid & Power Group) saw its segment profit dip to $58 million from $59 million on revenue that grew 15.6 percent to $1.015 billion.

Meanwhile, Textron Financial Corp. saw its segment profit fall to $13 million, an 80.9-percent decline from the 2007 second quarter’s $68 million, as the segment’s quarterly revenue fell 25.9 percent year-over-year to $177 million. The company cited an increase in loan-loss provisions because of the faltering credit market, and a revenue reduction reflecting the estimated impact of recent changes in the tax treatment of “sale in, lease out” (SILO) leveraged-lease transactions – issues Textron mentioned in a finance-segment profit warning last month (READ MORE) – along with a decline in fee income. “These reductions … were partially offset by a benefit from increased receivable yields on loans with interest rate floors and a reduction in selling and administrative expenses,” the company said.

Going forward, Textron continues to predict full-company 2008 earnings from continuing operations will be in the range of $3.80 to $4 per diluted share. Third-quarter earnings are expected to hit 80 to 90 cents per share.

Textron Inc. (NYSE: TXT) is a $13.2 billion company employing 44,000 people in 34 countries. Its brands include Bell Helicopter, Cessna Aircraft Co., Jacobsen, Kautex, Lycoming, E-Z-GO and Greenlee, among others. Additional information is available at www.textron.com.