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Textron Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: TXT

Moving now to second quarter results, starting with Slide #3. Revenues in the quarter were $3 billion, up 10.7% from a year ago. Our income from continuing operations was $0.58 per share, which compares to earnings per share of $0.29 in the second quarter of 2011.

Moving to cash flow, second quarter manufacturing cash flow before pension contributions was $121 million. And from that, we contributed $21 million to our pension plans.

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

Scott C. Donnelly

Thanks, Doug, and good morning, everybody. Our second quarter performance reflects continued growth in our commercial aircraft and industrial markets and improved operating execution across our businesses. We also continue to secure a number of key program wins and made strategic product announcements in the quarter that should further contribute to growth long term.

Starting with Textron Systems, our Marine & Land Systems business won the Canadian Tactical Armoured Patrol Vehicle program. This contract calls for delivery of 500 vehicles beginning in 2014 with an option for 100 more, as well as an initial 5-year support contract. This was an important win as it extends our production of armored vehicles through at least 2015. This win also establishes a new family of our proven Mine Resistant vehicles, and we can now market to other customers around the world.

Our TMLS business also won the Navy Ship-to-Shore Connector competition, which starts with detail design and construction of a test and training craft to be completed by early 2017. The contract also provides options for deliveries of up to 8 initial production units through 2020. So the total value of this contract could amount to $570 million over the remainder of the decade, with even more significant opportunity when the program enters full rate production.

And finally, at our Unmanned Aircraft Systems business, we recently received a $358 million award for engineering support and upgrades to retrofit 45 Shadow Systems with deliveries of these units beginning in late 2013.

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