Aviation

August 28, 2014

Analyst sees stable conditions for Cessna

The integration of Beechcraft Corp., which Textron bought in March, forming Textron Aviation, is on track, if not ahead of schedule, an analyst wrote.

“Stable” is the new up when it comes to sales at Cessna Aircraft, RBC Capital Markets aerospace analyst Robert Stallard said in a note to investors on Thursday.

“ ‘Stable’ continues to be the name of the game for Cessna with no meaningful improvement or deterioration of the legacy programs, and delivery growth driven by new products,” including the Citation M2, Citation Sovereign and Citation X, Stallard wrote. “This looks likely to continue through 2015, when the Latitude should start shipping.”

Cessna’s new midsize nine passenger business jet is expected to be certified in the second quarter of 2015.

Stallard’s comments came following investor meetings with Textron management.

The integration of Beechcraft Corp., which Textron bought in March, forming Textron Aviation, is on track, if not ahead of schedule, Stallard wrote.

Textron is focused on paying down the $500 million loan it has from the acquisition of Beechcraft, he said. After that, the company’s free cash flow will likely be used for “tuck-in” mergers and acquisitions and share repurchases, he said.

Some merger and acquisition activity is expected to be from Textron’s Industrial division, Stallard wrote. But it also has a more strategic focus on Textron’s growing presence in flight simulation and training, he said.

Reach Molly McMillin at 316-269-6708 or mmcmillin@wichitaeagle.com. Follow her on Twitter: @mmcmillin.

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