Textron Inc. (NYSE: TXT) today reported third quarter 2013 income from continuing operations of $0.35 per share, compared to $0.48 per share in the third quarter of 2012. Total revenues in the quarter were $2.9 billion, down $96 million from the third quarter of 2012.
Manufacturing segment profit was $195 million compared to $254 million in the third quarter of 2012. Manufacturing cash flow before pension contributions was $269 million during the third quarter compared to $153 million during last year’s third quarter. The company contributed $16 million to its pension plans during the third quarter.
“During the third quarter, we saw revenue growth at Bell, Industrial and Textron Systems and lower revenues at Cessna, as the light-to-midsize business jet market remained soft,” said Textron Chairman and CEO Scott C. Donnelly.
Textron’s guidance for 2013 earnings per share from continuing operations is now $1.75 - $1.85 with manufacturing cash flow before pension contributions between $200 million - $300 million. Expected pension contributions remain at about $200 million. The company’s previous outlook for earnings per share from continuing operations guidance was $1.90 - $2.10 and its outlook for manufacturing cash flow before pension contributions had been approximately $400 million.
“We are reducing our 2013 guidance to reflect lower margins at Bell due to manufacturing inefficiencies associated with the labor disruptions resulting from negotiations with bargained employees and implementation of a new enterprise resource planning system, and lower aircraft deliveries at Cessna,” Donnelly added.
Third Quarter Segment Results
Revenues at Cessna decreased $185 million, reflecting the delivery of 25 new Citations in the quarter, down from 41 units in last year’s third quarter.
Cessna recorded a segment loss of $23 million compared to a profit of $30 million from a year ago, reflecting the impact of the lower jet deliveries.