After steep losses in the first three months of the year, Cessna Aircraft returned to profitability in the second quarter, its parent company reported this morning.
Textron said Cessna recorded $872 million in revenue and $120 million in profit for the three months ending July 2, compared with $823 million in revenue and $108 million in profit for the same time a year ago.
For the first six months, Cessna recorded $1.62 billion in revenue and a loss of $33 million.
The company delivered 38 Citation jets in the quarter, down from 43 for the same time a year ago.
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Cessna's backlog at the end of the second quarter was $2.5 billion, down $113 million from the first quarter this year.
Demand for aircraft has remained stable, said Scott Donnelly, CEO and chairman of Textron.
But given the level of customer interest and order activity, the company expects demand to significantly pick up in the second half of the year.
There is “positive momentum at this point,” Donnelly said in a conference call this morning.
And while the market for has improved over last year, “it’s not taken off,” Donnelly said.
Cessna Aircraft will talk about some new products in October at the National Business Aviation Association convention in Las Vegas, Donnelly said. Analysts have been watching to see whether the company was planning to announce new products at the show.
Investment in product development is “pretty broad across all the various platforms,” Donnelly said. “Some of those are upgrades; others are brand new aircraft.”
The development runs from the Citation CJ-size aircraft through the Citation Ten, he said.
Textron, meanwhile, announced this morning that it recorded $2.72 billion in revenue in the second quarter, up from $2.71 billion from the same time a year ago. Net income was $90 million, compared with $82 million a year ago.