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.
Moving over to our Finance segment, we continue to have success with our non-captive exit strategy as we liquidated $171 million in non-captive finance receivables during the quarter, including $67 million reduction in our Golf portfolio. This included the disposal of 13 golf course mortgages and one owned golf course at favorable prices. Our non-captive portfolio now stands at $780 million. We generated income in the quarter, which reflected profitability in both captive and non-captive portfolios.Shifting to Industrial. Operating performance was solid, with revenues up at each of the business units. We did see some softness in European auto and tool markets as expected, but this was more than offset by strength in North America. Moving now to Cessna. We delivered 38 jets in the quarter, up from 31 last year and saw a double-digit growth in our aftermarket business. More importantly, we continue to see improvement in customer activity. New orders were higher than last year's first, second and third quarters combined; and our customer prospect list continues to improve. We had several additional positive developments at Cessna in the quarter, including an improvement in the range specification of the new Citation Latitude from 2,000 nautical miles to 2,300 nautical miles, the first flight of the new Ten, the first flight of the M2, delivery of our 400th Mustang and the announcement of new service capabilities in China. Expanding our Chinese service capability is part of our accelerated China strategy for which we also announced a very important agreement with AVIC to develop a Chinese general aviation business. We expect that this agreement will lead to a number of business opportunities. We expect to form a JV with AVIC and the Chengdu municipal government, which will focus initially on final assembly and completions of our Sovereign product line for our Chinese customers and will ultimately evolve to include a number of activities, ultimately including the development of a new aircraft. We're obviously very excited about this opportunity and believe this positions Cessna very well to participate in what will be a significant growth market. Read the rest of this transcript for free on seekingalpha.com