This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Textron's CEO Discusses Q1 2012 Results - Earnings Call Transcript

On the call today, we have Scott Donnelly, Textron's Chairman and CEO; and Frank Connor, our Chief Financial Officer. Our earnings call presentation can be found in the Investor Relations section of our website.

Moving now to first quarter results, starting with Slide #3. Revenues in the quarter were $2.9 billion, up 15.2% from a year ago. On a GAAP basis, we recorded income from continuing operations of $0.41 per share, which compares to earnings per share of $0.10 in the first quarter of 2011.

Moving to cash flow, first quarter manufacturing cash flow before pension contributions was a $106 million use of cash. First quarter pension contributions were $144 million.

With that, I'll turn the call over to Scott.

Scott C. Donnelly

Thanks, Doug, and good morning, everybody. I believe our first quarter financial results represented a very solid start to the year, reflecting growth in our commercial aircraft and industrial end markets and continued operational execution improvements across all of our businesses. We also secured a number of key program wins and made some important strategic moves in the quarter that should help provide growth in the long term.

Starting with Systems, we won 2 important unmanned aerial systems fee-for-service contracts from the U.S. DoD. The business model for these fee-for-service programs is different, and we normally -- in that we will be investing CapEx in the platforms upfront and in turn, we'll be receiving cash over time as we operate the assets to deliver services to our customer. These 2 contracts were important for a number of reasons. First, the addition of what we expect will be meaningful revenue streams over the next several years at Textron Systems. And second, both these awards are based on our Aerosonde unmanned aircraft, which is a smaller air vehicle than our traditional Shadow models. So we'll now have a second product platform deployed with the U.S. military, which should lead to future opportunities. Finally, these contracts provide an opportunity to demonstrate the attractiveness of fee-for-service UAS arrangements for additional U.S. and foreign military applications.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!


DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs