Revenue Growth Of $285 Million, Up 7.6% From Prior Year

Textron has reported fourth quarter 2019 net income of $0.87 per share. Adjusted net income, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, was $1.11 per share for the fourth quarter of 2019, compared to $1.15 per share in the fourth quarter of 2018. Adjusted net income for 2019 excludes $72 million of pre-tax special charges ($0.24 per share, after-tax) recorded in the fourth quarter, primarily related to restructuring activities announced in December 2019.

Full-year 2019 net income was $3.50 per share. Full-year 2019 adjusted net income, a non-GAAP measure, was $3.74 per share, up from $3.34 in 2018.

“Textron Aviation saw double digit revenue growth in the quarter driven largely by initial deliveries of our new Citation Longitude, reflecting our continued investment in new products,” said Textron Chairman and CEO Scott C. Donnelly. “We also saw growth from strong commercial volume at Bell.”

Net cash provided by operating activities of continuing operations of the manufacturing group for the full year was $960 million, compared to $1,127 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 $642 million compared to $784 million last year.

For the full year, Textron returned $503 million to shareholders through share repurchases.

Textron is forecasting 2020 revenues of approximately $14 billion, up from $13.6 billion. Textron expects full-year 2020 earnings per share will be in the range of $3.50 to $3.70.

The company is estimating net cash provided by operating activities of continuing operations of the manufacturing group will be between $1,010 million and $1,110 million and manufacturing cash flow before pension contributions (a non-GAAP measure) will be between $700 million and $800 million, with planned pension contributions of about $50 million.

Fourth Quarter Segment Results:

Textron Aviation

• Revenues at Textron Aviation of $1.7 billion were up 11%, primarily due to higher volume and mix, largely reflecting the Longitude’s entry into service.
• Textron Aviation delivered 71 jets, up from 63 last year, and 59 commercial turboprops, down from 67 last year.
• Segment profit was $134 million in the fourth quarter, down from $170 million a year ago, primarily due to the mix of products sold and an unfavorable impact from inflation, net of pricing.
• Textron Aviation backlog at the end of the fourth quarter was $1.7 billion.

Bell

• Bell revenues were $961 million, up 16% from $827 million last year, primarily on higher commercial volume.
• Bell delivered 76 commercial helicopters in the quarter, up from 46 last year.
• Segment profit of $118 million was up $10 million, largely on the higher commercial volume.
• Bell backlog at the end of the fourth quarter was $6.9 billion.

(Source: Textron news release. Image from file)

FMI: www.textron.com