Textron Inc. (NYSE: TXT) today reported second quarter 2012 income from continuing operations of $0.58 per share, compared to income of $0.29 per share in the second quarter of 2011. Total revenues in the quarter were $3.0 billion, up 10.7% from the second quarter of 2011.
Manufacturing segment profit was $288 million, up $59 million from the second quarter of 2011. Manufacturing cash flow before pension contributions was $121 million during the second quarter compared to $171 million during last year’s second quarter. The company contributed $21 million to its pension plans during the second quarter.
“The payoff from investing in new products and services is reflected in our double digit revenue growth during the quarter and our focus on operational execution is driving solid results,” said Textron Chairman and CEO Scott C. Donnelly.
Donnelly continued, “We are also very pleased with recent significant program wins, including the Canadian Tactical Armored Patrol Vehicle, the U.S. Navy’s Ship-to–Shore Connector, upgrades to the U.S. Army’s Shadow TUAS, and an agreement with NetJets to provide up to 150 Citation Latitudes for their fleet, all of which help contribute to the positive outlook we have for our businesses.”
Textron confirmed its 2012 earnings per share from continuing operations guidance of $1.80 to $2.00 and cash flow from continuing operations of the manufacturing group before pension contributions between $700 and $750 million, with planned pension contributions of about $200 million.
Second Quarter Segment Results
Revenues at Cessna increased $111 million, reflecting the delivery of 49 new Citation jets in the quarter, compared with 38 in last year’s second quarter.
Segment profit of $35 million was an improvement of $30 million, primarily due to the higher volume.
Cessna backlog at the end of the second quarter was $1.5 billion, down $196 million from the first quarter of 2012.
Bell revenues increased $184 million in the second quarter from the same period in the prior year, primarily reflecting the delivery of 47 commercial helicopters compared to 22 units in last year’s second quarter. Bell also delivered 9 V-22 and 6 H-1 aircraft in the quarter compared to 9 V-22’s and 8 H-1’s in last year’s second quarter.
Segment profit increased $32 million, primarily reflecting higher volume and favorable mix in our commercial business.
Bell backlog at the end of the second quarter was $6.7 billion, down $394 million from the first quarter of 2012.
Revenues at Textron Systems decreased $63 million primarily due to lower sensor fuzed weapon and armored security vehicle volumes. Segment profit decreased $9 million, reflecting the lower volumes and deliveries on lower-margin contracts.
Textron Systems’ backlog at the end of the second quarter was $2.7 billion, up $1.2 billion from the first quarter of 2012.
Industrial revenues increased $37 million reflecting higher volumes across most of the businesses partially offset by unfavorable foreign exchange. Segment profit increased $6 million primarily due to the higher volume.
Finance segment revenues increased $22 million compared to the second quarter of 2011. The segment reported a profit of $22 million compared to a $33 million loss in last year’s second quarter.
Conference Call Information
Textron will host its conference call today, July 19, 2012 at 8:00 a.m. (Eastern) to discuss its results and outlook. The call will be available via webcast at www.textron.com or by direct dial at (800) 230-1059 in the U.S. or (612) 234-9959 outside of the U.S. (request the Textron Earnings Call).
In addition, the call will be recorded and available for playback beginning at 10:30 a.m. (Eastern) on Thursday, July 19, 2012 by dialing (320) 365-3844; Access Code: 225826.
A package containing key data that will be covered on today’s call can be found in the Investor Relations section of the company’s website at www.textron.com.
About Textron Inc.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at www.textron.com.
Manufacturing cash flow before pension contributions is a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release.