Bell and Textron report revenue up
Jan. 27, 2011, Providence, RI - Textron Inc. today reported 2010 fourth quarter income of $.19 per share, compared to a loss of $.23 per share in the fourth quarter of 2009. Excluding special charges, the company reported income from continuing operations of $.33 per share, up from $.15 per share in the fourth quarter of 2009. Revenues were $3.1 billion, up 11.2 per cent.
By Carey Fredericks
Manufacturing free cash flow from continuing operations for the year was $692 million. The company made a voluntary contribution of $350 million from this cash flow to its pension plans during the quarter.
"Fourth quarter results benefited from increased demand in our commercial businesses and strong performance at Bell," said Textron Chairman and CEO Scott C. Donnelly. "We're particularly encouraged by the pick-up in business jet and commercial helicopter demand, driven in part by the impact of bonus depreciation in the United States, but also reflecting relative stability in global economies and improving general business confidence," Donnelly added.
Managed receivables at the company's finance business ended the year at $4.6 billion, down $2.4 billion from the end of last year, as the company continued to make good progress with its program of liquidating non-captive finance receivables.
Consolidated net debt ended the year at $5.0 billion, down $2.4 billion from the end of 2009.
The company completed its restructuring program during the fourth quarter, as it recorded charges of [Article].13 per share ($54 million, pre-tax).
Textron is forecasting 2011 revenues of approximately $11.7 billion, reflecting top line growth across all of its manufacturing segments. Cash flow from continuing operations of the manufacturing group before pension contributions is expected to be between $800 and $850 million with planned pension contributions of about $250 million. Earnings per share from continuing operations are expected to be in the range of $1.00 to $1.15.
Donnelly continued, "An improving commercial outlook, combined with accelerating investments in new product development, should support top line growth across our manufacturing businesses."
Fourth Quarter Segment Results
Cessna's revenues increased $105 million in the fourth quarter from the same period in the prior year, reflecting higher overall volume, including the delivery of 79 business jets vs. 68 last year.
Segment profit decreased $5 million, as the profit from higher volumes was more than offset by the impact of manufacturing inefficiencies related to low production levels, lower deposit forfeiture income, and higher used aircraft write-downs.
Cessna backlog at the end of the fourth quarter was $2.9 billion, down $495 million from the end of the third quarter.
Bell's revenues increased $173 million in the fourth quarter from the same period in the prior year. U.S. Government revenues increased $54 million due to higher V-22 and H-1 deliveries. Commercial revenues increased $119 million, primarily due to higher aircraft deliveries and pricing.
Segment profit increased $54 million, primarily due to improved performance and pricing in excess of inflation.
Bell backlog at the end of the fourth quarter was $7.2 billion, up $661 million from the end of third quarter.
Revenues at Textron Systems increased $25 million primarily due to higher volumes of unmanned aircraft systems and unattended ground systems.
Segment profit decreased $10 million, primarily due to lower armored security vehicle pricing, unmanned aircraft systems mix and inflation.
Textron Systems' backlog at the end of the fourth quarter was $1.6 billion, flat with the end of the third quarter.
Revenues increased $66 million in the fourth quarter due to higher volumes at Kautex, Greenlee and Jacobsen, which resulted in an increase in segment profit of $7 million.
Finance segment revenues decreased $55 million compared to the fourth quarter of 2009, primarily due to reduced earnings on lower finance receivables.
Finance segment loss was lower by $8 million, primarily due to lower loan loss provisions and portfolio losses, partially offset by lower interest margin on the reduced portfolio of finance receivables.
Since the end of last quarter, sixty-day plus delinquencies of finance receivables held for investment increased to $411 million from $357 million and nonaccrual finance receivables decreased from $876 million to $850 million. Charge-offs in the fourth quarter were $24 million compared with $26 million in the third quarter of 2010.
Managed receivables ended the year at $4.6 billion, including $2.3 billion of non-captive managed receivables.
Income from continuing operations, excluding special charges and manufacturing free cash flow are non-GAAP measures that are defined and reconciled to GAAP in attachments to this release.