Strong Cash Flow Also Reported In The Year-End Accounting

Textron on Wednesday reported fourth quarter 2013 income from continuing operations of $0.60 per share, up from $0.50 per share in the fourth quarter of 2012. Revenues in the quarter were $3.5 billion, up four percent from the fourth quarter of 2012. Manufacturing segment profit was $305 million compared to $279 million in the fourth quarter of 2012. Manufacturing cash flow before pension contributions was $774 million compared to $625 million during last year’s fourth quarter.

Full-year income from continuing operations was $1.75 per share, compared to $1.97 in 2012. Full-year revenues were $12.1 billion, down one percent. Manufacturing cash flow before pension contributions was $256 million, compared to $793 million in 2012. Textron’s consolidated net debt ended the year at $1.98 billion, down $598 million from the end of 2012.
 
“Overall, we had a good fourth quarter to close out the year, with revenue growth at Cessna, Bell and Industrial and solid cash generation across all of our businesses,” said Textron Chairman and CEO, Scott C. Donnelly .
 
Textron is forecasting 2014 revenues of approximately $13.2 billion, up about 9% from 2013. Earnings per share from continuing operations are expected to be in the range of $2.00 to $2.20. Cash flow from continuing operations of the manufacturing group before pension contributions is estimated to be between $600 and $700 million with planned pension contributions of about $80 million. These projections do not include the impact of the planned acquisition of Beechcraft, which is expected to close during the first half of the year.
 
“2013 was an important year with significant new product introductions and investments for future growth of our businesses,” Connelly continued. "Our 2014 outlook reflects the benefits of those efforts and we will continue to make investments necessary to support ongoing growth and create long-term shareholder value.”

Cessna Revenues increased $22 million, primarily due to the delivery of 62 new Citation jets in the quarter, compared with 53 in the fourth quarter of 2012, partially offset by the impact of the continued wind-down of the CitationAir business and lower Caravan deliveries.
 
Segment profit was up $10 million from the fourth quarter of 2012, primarily due to better performance, reflecting an unfavorable arbitration award recorded in the fourth quarter of 2012. Cessna backlog at the end of the fourth quarter was $1.0 billion, down $54 million from the end of the third quarter 2013.

Revenues for Bell Helicopter increased $226 million, reflecting delivery of 13 V-22’s, 6 H-1’s and 75 commercial aircraft in the quarter compared to 9 V-22’s, 6 H-1’s and 65 commercial units in last year’s fourth quarter. Segment profit was up $1 million from the fourth quarter of 2012 as the impact of higher volumes was largely offset by lower military margins and manufacturing inefficiencies related to prior period labor negotiations and implementation of a new enterprise resource planning system.
 
Bell backlog at the end of the fourth quarter was $6.5 billion, up $47 million from the end of the third quarter 2013.

FMI: www.textron.com