Textron Profit Rises 13%
Textron Inc. ( TXT ) said its fourth-quarter income improved 13% as the diversified U.S. industrial company delivered more Cessna planes and Bell helicopters.
The company forecast per-share earnings from continuing operations of $2 to $2.20 a share on $13.2 billion in revenue for the new year, compared with estimates of $2.23 a share and $13.11 billion, respectively, from analysts polled by Thomson Reuters.
The maker of Cessna planes, Bell helicopters and E-Z-Go golf carts in late December unveiled plans to buy Beechcraft Corp. for $1.4 billion, looking to combine the U.S. plane maker with its Cessna business and extend its lead as the world's largest producer of business and general aviation planes.
However, the company soon after warned that lower-than-expected business jet sales would leave 2013 profits at the low end of existing guidance, with the planned Beechcraft purchase seen boosting earnings from 2015.
Overall, Textron posted a profit of $167 million, or 59 cents a share, up from $148 million, or 51 cents a share, a year earlier. Earnings from continuing operations were 60 cents, up from 50 cents.
Revenue rose 4.3% to $3.51 billion.
Analysts surveyed by Thomson Reuters expected a profit of 59 cents a share on $3.43 billion in revenue.
Cessna revenue rose 2.4% as the company delivered 62 new Citation jets in the quarter, up from 53 a year ago. The unit's profit rose 43% to $33 million.
Bell revenue grew 20%, reflecting delivery of 13 V-22's, 6 H-1's and 75 commercial aircraft, compared with 9 V-22's, 6 H-1's and 65 commercial units a year ago. Segment profit edged up 0.6% to $178 million.
Textron Systems revenue declined 28% on lower volumes, while industrial revenue rose 9.5%.
Shares closed Tuesday at $36.10 and were inactive premarket. The stock is up 27% over the past three months.
Write to Ben Fox Rubin at firstname.lastname@example.org
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