Second-quarter revenue up $623 million, Textron reports
07/16/2014 7:33 AM
08/08/2014 10:25 AM
Revenue and profit at Textron Aviation was higher in the second quarter of 2014, parent company Textron said Wednesday.
Textron said in a news release that revenue for the segment that includes Cessna and Beechcraft was up $623 million for the three-month period that ended June 30, compared with the same period in 2013.
Textron Aviation’s profit also increased to $28 million, compared with a $50 million loss in the segment a year ago, when the numbers included only Cessna.
Textron purchased Beechcraft earlier this year and merged the company with Cessna under the Textron Aviation name.
Textron officials said the second quarter of 2014 is its first full quarter that includes Beechcraft sales. Textron completed its acquisition of Beechcraft at the end of the first quarter of 2014.
Textron Aviation delivered 36 business jets and 34 Beechcraft King Air turboprops in the second quarter of 2014.
That compares with deliveries of 20 business jets and 24 King Airs in the same period last year.
Textron CEO Scott Donnelly said in a conference call with analysts Wednesday morning that sales of Textron Aviation’s Cessna and Beechcraft legacy aircraft were “OK” and that he’s hopeful about the overall general aviation and business jet market.
“The underlying market – stable is probably the right word,” he said in the call. “We certainly hope to see it recover as time goes on. All indicators are fairly positive. But it’s been stubborn in terms of the rate of recovery so we’re still largely banking on new products coming into the market to drive most of the growth.”
Those new products include Cessna’s Citation M2, Citation Sovereign Plus and Citation X-Plus business jets, Donnelly said.
Textron Aviation’s backlog at the end of the second quarter of 2014 was $1.4 billion. That’s down $100 million from the end of first-quarter 2014, the company said.
For Textron as a whole, the company recorded a $31 million increase in net income between the second quarters of 2014 and 2013.
But net income for the first half of 2014 was down by $3 million compared with the first half of 2013.