PROVIDENCE – Textron Financial Corp., a subsidiary of Providence-based Textron Inc., is forecasting that its profits will be 41 percent lower this year.

Textron Financial expects a net operating profit of $130 million for the full year, down from $222 million, executives told analysts during a presentation last week.

Tom Cullen, the chief financial officer of Textron Financial, said the company is projected loan-loss provisions of $88.3 million this year, according to Reuters.

When the parent company reported its second-quarter earnings last month that were $1.03 per share – below the consensus estimates of Wall Street – executives noted a $55 million decrease in profits in its financial arm because of lower market interest rates, lower fee income and an increase in the loan-loss set-aside. (READ MORE)

At the time of that earnings report, the percentage of loan receivables that were delinquent more than 60 days was 0.61 percent, up from 0.33 percent in the 2008 first quarter. Nonperforming assets increased to 2.31 percent, up from 1.84 percent at the end of the preceding quarter.

Textron Financial Corp. is a diversified commercial finance company with $10 billion in managed receivables. Its core businesses include Aviation Finance, Asset-Based Lending, Distribution Finance, Golf Finance, Resort Finance and Structured Capital; Textron Financial also provides financing programs for products manufactured by its parent company, Textron Inc. (NYSE: TXT). To learn more, visit www.TextronFinancial.com.