Published April 20, 2011
Textron (TXT) said on Wednesday that it swung to a first-quarter profit over a year ago loss, fueled by stronger demand by the military and commercial segments for helicopters and security vehicles, though its results still missed Wall Street expectations.
The Providence, R.I.–based government contractor posted net income of $29 million, or 9 cents a share, compared with a loss of $8 million, or 3 cents a share, in the same quarter last year.
Excluding one-time items, the company earned 10 cents a share, which fell short of average analyst estimates polled by Thomson Reuters of 17 cents.
First-quarter revenue was $2.48 billion, up 12.2% from $2.2 billion in the year-earlier period, virtually matching the Street’s view of $2.51 billion.
“First-quarter results benefited from strong execution and cost performance at Bell, Systems and Industrial,” Textron CEO Scott Donnelly said in a statement, however, he noted that low production and delivery levels at Cessna led to an operating loss in the quarter.
Revenues for Bell, Textron Systems and Industrials widened by $131 million, $13 million and $78 million, respectively, though Cessna only delivered 31 new Citation jets during the period, which is flat from last year.
Cessna’s revenues still climbed higher, though, because of a higher mix of light to mid-sized new jets and more used jet deliveries.
Textron reiterated its fiscal guidance, with earnings from continuing operations in the range of $1 to $1.15 a share. The company said it still expects a slight increase in commercial deliveries this year at both Bell and Cessna. Wall Street is looking for earnings of $1.17 a share.