Textron 3Q Profit Plunges On Weak Markets

PROVIDENCE, R.I. (AP) — 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 demand for its products "continues to show signs of stabilization," but that recovery "likely will be slow and modest."

In addition to the downturn in business jets, Textron also 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 hit hard and is struggling to recover.

Shares of Textron climbed to $20.04, up 9.2 percent, or $1.68 in morning trading.

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. On that basis, analysts surveyed by Thomson Reuters on average expected a loss of 3 cents per share.