Increase in jet deliveries boosts Textron in third quarter

The parent company of Textron Aviation reported higher revenue and income in the third quarter, driven in part by more aircraft deliveries.

Textron Inc.’s revenue was $3.4 billion in the three-month period ended Sept. 30, compared with $2.9 billion in the same period a year ago.

Income from continuing operations was 57 cents a share, up nearly 63 percent from a year ago.

“We believe we had a solid third quarter,” Textron CEO Scott Donnelly said in a conference call with analysts Friday morning.

The Providence, R.I.-based company also raised its expectations for full-year earnings per share from continuing operations to between $2.05 a share and $2.15 a share.

In its Textron Aviation business, which includes Cessna and Beechcraft, Textron said it had a $62 million profit, compared with a $23 million loss at Cessna a year ago. This year’s third-quarter results include Beechcraft, which Textron acquired in March.

Textron Aviation delivered 33 jets during the third quarter, compared with 25 jets in the third quarter of 2013.

The company said it also delivered 30 King Air turboprops during the quarter, compared with 26 delivered by Beechcraft in the same period a year ago.

Textron Aviation’s backlog was $1.4 billion, flat compared with the end of the second quarter 2014.

Donnelly said in the conference call that he is a seeing “encouraging trends” at Textron Aviation.

“We continue to see the availability of used aircraft come down, and our own used trade-in activity has improved,” he said.

Donnelly told analysts the speed of the integration of Beechcraft “has happened quicker than we laid out.”

When asked by analysts about improvement in order activity for new aircraft since September, he said it’s been across the company’s product line.

“I think we have seen an overall, better demand environment,” Donnelly said.

Donnelly took questions from a couple of different analysts specific to Beechcraft.

He said Textron Aviation would take the same approach to research and development of upgraded and new products for Beechcraft as it has with Cessna.

“Absolutely there will be investment on the R and D side in the King Air and other historical Beech (products),” he said.

Donnelly also said there could be further consolidation of Textron Aviation’s “footprint” next year, including warehouse and distribution operations. He also noted that there are separate operations between Cessna and Beechcraft in fabrication, composite and metal-bonding operations.

There are “opportunities to do some consolidations in back shops,” he said.

This story was originally published October 17, 2014 at 7:46 AM with the headline "Increase in jet deliveries boosts Textron in third quarter."