Revenues For The Quarter Were Down, Including Aviation Sector

Textron's fourth quarter numbers were down somewhat compared to last year, but Textron Chairman and CEO Scott C. Donnelly said that there are some reasons to be optimistic going into 2017.

The company reported fourth quarter 2016 income from continuing operations of $0.78 per share compared to $0.81 per share in the fourth quarter of 2015. During this year’s fourth quarter, the company recorded an $8 million pre-tax restructuring charge ($0.02 per share, after-tax). Excluding this item, adjusted income from continuing operations, a non-GAAP (Generally Accepted Accounting Principles) measure that is defined and reconciled to GAAP in an attachment to this release, was $0.80 per share for the fourth quarter of 2016.

Revenues in the quarter were $3.8 billion, down 2.5 percent from the fourth quarter of 2015. Textron segment profit in the quarter was $391 million, up $13 million from the fourth quarter of 2015.

“Overall, revenues were down in the quarter but we were encouraged by increasing demand at Industrial and strong operating performance at Bell,” Donnelly said. “We also completed the first flight of our production Scorpion jet as we continued to ramp investment in this program to position us to compete for opportunities in 2017.”

Full-year income from continuing operations was $3.09 per share compared to $2.50 per share last year. Full-year adjusted income from continuing operations, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, was $2.62 per share, compared to $2.50 in 2015.

Net cash provided by operating activities of continuing operations of the manufacturing group for the full year was $988 million, compared to $1,038 million last year. Manufacturing cash flow before pension contributions, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, was $573 million compared to $631 million last year.

Revenues at Textron Aviation were down $52 million, primarily due to lower defense and turboprop volumes partially offset by higher pre-owned volume.

Textron Aviation delivered 58 new Citation jets and 28 King Air turboprops in the quarter, compared to 60 jets and 33 King Airs in last year’s fourth quarter. Textron Aviation recorded a segment profit of $135 million in the fourth quarter compared to $138 million a year ago, and the backlog at the end of the fourth quarter was $1.0 billion, down $73 million from the end of the third quarter.

Bell revenues were down $148 million, as Bell delivered 35 commercial helicopters, compared to 56 units last year, 4 V-22’s in the quarter, down from 8 V-22’s in last year’s fourth quarter and, 8 H-1’s compared to 9 H-1’s last year.

Segment profit was up $2 million despite the decline in revenues, primarily due to favorable performance. Bell backlog at the end of the fourth quarter was $5.4 billion, up $416 million from the end of the third quarter.

(Source: Textron news release. Images from file)

FMI: www.textron.com