Less Than 375 Jets Will Be Produced In '09, Report Says

Textron Incorporated is blaming credit markets which remain challenging for additional production cuts at its Cessna Aircraft unit. The company now says the already adjusted projection for deliveries of 375 jets in 2009 will be trimmed further.

As ANN reported last month, Cessna already cut back anticipated Citation production in 2009 from approximately 535 jets. The number of these latest cutbacks -- and which lines will be affected -- have not been announced; to date, the only Citation line that hasn't seen its numbers cut is the entry-level Mustang light jet.

Cessna will not be the only Textron division facing production cuts. Bloomberg reports industrial units will share the pain. Company spokeswoman Karen Gordon Quintal promised more details when the company issues its first-quarter earnings report on April 29.

Textron has told analysts it expected to finish the quarter Tuesday with receivables reduced by at least $800 million, ahead of its own schedule, and to end the period with more than a billion in cash. The company expects to complete the sale of its HR Textron unit to Woodward Governor Company tomorrow, bringing in 265-million dollars in after-tax cash.

Textron made its first-ever quarterly dividend cut last month to conserve cash. Standard & Poor’s cut its debt rating for both the parent company, and for the Textron Financial Corporation, which has announced it will pull out of financing anything but the parent company's own products.

FMI: www.cessna.com, www.textron.com