Textron Inc. (NYSE: TXT) today reported second quarter 2013 income from continuing operations of $0.40 per share, compared to income of $0.58 per share in the second quarter of 2012. Total revenues in the quarter were $2.8 billion, down 6% from the second quarter of 2012, primarily reflecting lower business jet deliveries.
Segment profit was $213 million for the quarter, compared to $310 million in the second quarter of 2012, primarily reflecting lower business jet deliveries and $28 million in pre-tax severance costs recorded at Cessna, which were previously announced. Manufacturing cash flow before pension contributions was a $362 million use of cash during the second quarter compared to $121 million of cash generated during last year’s second quarter. The company contributed $17 million to its pension plans during the second quarter.
“Despite weakness in European markets, we saw solid growth at Textron Systems and our Industrial businesses, as well as continued strong commercial orders at Bell,” said Textron Chairman and CEO Scott C. Donnelly. “On the other hand, business jet demand continued to be soft, but we believe the cost, production and pricing actions we took are the right actions to support future growth at Cessna.”
Textron confirmed its 2013 earnings per share from continuing operations guidance of $1.90 to $2.10 and its expectation for cash flow from continuing operations of the manufacturing group before pension contributions of about $400 million with expected pension contributions of about $200 million.
Second Quarter Segment Results
Revenues at Cessna decreased $203 million, reflecting the delivery of 20 new Citation jets in the quarter compared with 49 in last year’s second quarter.
Cessna recorded a segment loss of $50 million in the second quarter compared to a profit of $35 million a year ago, reflecting the lower jet deliveries and $28 million in pre-tax severance costs.