- $468 million returned to shareholders through share repurchases
- Completed sale of Tools & Test product line
- Full-year adjusted EPS guidance narrowed to $3.20 - $3.30 per share
- Full-year cash flow guidance reaffirmed at $750 - $850 million
PROVIDENCE, R.I. — (BUSINESS WIRE) — October 18, 2018 — Textron Inc. (NYSE: TXT) today reported third quarter 2018 income from continuing operations of $2.26 per share, reflecting the gain on the sale of the Tools & Test product line of $1.65 per share, or $0.61 per share of adjusted income from continuing operations, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release. This compares to $0.65 per share of adjusted income from continuing operations in the third quarter of 2017.
“Revenues were lower in the quarter, largely reflecting declines at Industrial and Textron Systems,” said Textron Chairman and CEO Scott C. Donnelly. “Operationally, we achieved margin improvements at Aviation and Bell, reflecting strong execution within those segments.”
Net cash provided by operating activities of continuing operations of the manufacturing group for the third quarter totaled $319 million, compared to $79 million in last year’s third quarter. Manufacturing cash flow before pension contributions, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, totaled $259 million compared to $281 million during last year’s third quarter.
In the quarter, Textron returned $468 million to shareholders through share repurchases, compared to $122 million in the third quarter of 2017.
Textron now expects full-year 2018 GAAP earnings per share from continuing operations will be in the range of $4.81 to $4.91, or $3.20 to $3.30 on an adjusted basis (non-GAAP), which is reconciled to GAAP in an attachment to this release.
The company reaffirms full-year manufacturing cash flow before pension contributions (a non-GAAP measure) to be in a range of $750 to $850 million.
Third Quarter Segment Results
Revenues at Textron Aviation of $1.1 billion were down 2%, due to lower volume and mix reflecting lower turboprop volume, partially offset by favorable pricing.
Textron Aviation delivered 41 jets, flat with last year, and 43 commercial turboprops, down from 57 last year.
Segment profit was $99 million in the third quarter, up from $93 million a year ago, due to favorable price and performance, partially offset by the impact of lower volume and mix.
Textron Aviation backlog at the end of the third quarter was $1.8 billion.
Bell revenues were $770 million, down 5% primarily on commercial mix, partially offset by higher military revenues.
Bell delivered 43 commercial helicopters in the quarter, up from 39 last year.
Segment profit of $113 million was up $7 million, largely the result of favorable performance on military programs, partially offset by commercial mix.
Bell backlog at the end of the third quarter was $5.7 billion.
Revenues at Textron Systems were $352 million, down from $458 million last year, reflecting lower TAPV deliveries at Textron Marine & Land Systems and lower volume in the Simulation, Training & Other product line.
Segment profit was down $11 million, primarily reflecting the lower net volume.
Textron Systems’ backlog at the end of the third quarter was $1.1 billion.
Industrial revenues decreased $112 million largely related to the disposition of our Tools & Test product line.
Segment profit was down $48 million from the third quarter of 2017, largely due to unfavorable pricing and performance, and the impact from the disposition of our Tools & Test product line.
Finance segment revenues were down $3 million, and profit was down $4 million from last year’s third quarter.
Conference Call Information
Textron will host its conference call today, October 18, 2018 at 8:00
a.m. (Eastern) to discuss its results and outlook. The call will be
available via webcast at
or by direct dial at (800) 230-1951 in the U.S. or (612) 288-0340
outside of the U.S. (request the Textron Earnings Call).