Textron 3Q Profit Plunges On Weak Markets

STEPHEN SINGER

Textron Inc. said Tuesday its third-quarter profit plunged 98 percent as the company continues to face reduced sales at its corporate jet and helicopter businesses.

Scott Donnelly, the company's president and CEO-elect, said in a statement that demand for Textron's products "continues to show signs of stabilization," but recovery "likely will be slow and modest."

In addition to the downturn in business jets, Textron had significant problems when capital markets locked up last year. Its finance arm, which makes loans to buyers of new and used Cessna business jets, golf courses and vacation-resort developments, was hard hit and is struggling to recover.

The Providence, R.I., company which also makes Bell helicopters and EZ-Go golf carts, said its profit fell to $4 million, or 1 cent per share, for the period ended Oct. 3, down sharply from $206 million, or 83 cents per share, a year ago. It earned 2 cents per share from continuing operations, however, topping the average estimate of analysts surveyed by Thomson Reuters, who had expected a loss of 3 cents per share.

Revenue remained under pressure, falling 27 percent, to $2.55 billion. But that also bested Wall Street's average forecast of $2.52 billion.