Business jet deliveries boost Cessna’s fourth-quarter revenue, profit
02/06/2014 8:50 AM
08/08/2014 10:21 AM
Cessna Aircraft revenue increased $22 million and profit rose $10 million in the fourth quarter of 2013 because of an increase in business jet deliveries.
For the year, however, Cessna recorded a loss of $48 million, compared to a profit of $82 million in 2012.
The company delivered 62 new Citation jets in the quarter, compared to 53 in the fourth quarter of 2012.
Deliveries for the year, however, were lower last year than in the previous year.
In 2013, Cessna delivered 139 business jets, compared to 181 in 2012.
“The market is still challenging,” Scott Donnelly, Textron CEO, told analysts on a conference call about Textron’s financial performance.
Growth at Cessna in 2014 will be driven by new products, he said, including the Citation M2, Sovereign and Citation X.
“New products matter a lot,” Donnelly said.
Cessna’s backlog at the end of the fourth quarter totaled $1 billion, down $54 million from the end of the third quarter.
For the quarter, Cessna revenue totaled $923 million, compared to $901 million in the fourth quarter of 2012.
Profit totaled $33 million for the quarter, compared to $23 million for the same time a year ago.
Cessna’s parent company, Textron, reported revenue for the quarter of $3.5 billion, compared to $3.36 billion a year ago.
It recorded net income of $167 million, compared to $148 million in the quarter.