The following information was excerpted from a press release announcing Textrons’s fourth quarter 2013 fiscal results. Note that the information presented below comes from various sections of the company’s press release. The entire press release should be consulted for a complete discussion. To view the entire press release… click here.
Textron Inc. (NYSE: TXT) today reported fourth quarter 2013 income from continuing operations of $0.60 per share, up from $0.50 per share in the fourth quarter of 2012. Revenues in the quarter were $3.5 billion, up four percent from the fourth quarter of 2012. Manufacturing segment profit was $305 million compared to $279 million in the fourth quarter of 2012. Manufacturing cash flow before pension contributions was $774 million compared to $625 million during last year’s fourth quarter.
Full-year income from continuing operations was $1.75 per share, compared to $1.97 in 2012. Full-year revenues were $12.1 billion, down one percent. Manufacturing cash flow before pension contributions was $256 million, compared to $793 million in 2012.
Textron’s consolidated net debt ended the year at $1.98 billion, down $598 million from the end of 2012.
“Overall, we had a good fourth quarter to close out the year, with revenue growth at Cessna, Bell and Industrial and solid cash generation across all of our businesses,” said Textron Chairman and CEO, Scott C. Donnelly .
Textron is forecasting 2014 revenues of approximately $13.2 billion, up about 9% from 2013. Earnings per share from continuing operations are expected to be in the range of $2.00 to $2.20. Cash flow from continuing operations of the manufacturing group before pension contributions is estimated to be between $600 and $700 million with planned pension contributions of about $80 million. These projections do not include the impact of the planned acquisition of Beechcraft, which is expected to close during the first half of the year.
Donnelly continued, “2013 was an important year with significant new product introductions and investments for future growth of our businesses. Our 2014 outlook reflects the benefits of those efforts and we will continue to make investments necessary to support ongoing growth and create long-term shareholder value.”
Fourth Quarter Segment Results and Actions
Revenues increased $22 million, primarily due to the delivery of 62 new Citation jets in the quarter, compared with 53 in the fourth quarter of 2012, partially offset by the impact of the continued wind-down of the CitationAir business and lower Caravan deliveries.
Segment profit was up $10 million from the fourth quarter of 2012, primarily due to better performance, reflecting an unfavorable arbitration award recorded in the fourth quarter of 2012.
Cessna backlog at the end of the fourth quarter was $1.0 billion, down $54 million from the end of the third quarter 2013.
Revenues increased $226 million, reflecting delivery of 13 V-22’s, 6 H-1’s and 75 commercial aircraft in the quarter compared to 9 V-22’s, 6 H-1’s and 65 commercial units in last year’s fourth quarter.
Segment profit was up $1 million from the fourth quarter of 2012 as the impact of higher volumes was largely offset by lower military margins and manufacturing inefficiencies related to prior period labor negotiations and implementation of a new enterprise resource planning system.
Bell backlog at the end of the fourth quarter was $6.5 billion, up $47 million from the end of the third quarter 2013.
Revenues at Textron Systems decreased $162 million from the fourth quarter of 2012, reflecting lower volumes.
Segment profit was up $4 million when compared to the fourth quarter of 2012, as improved performance more than offset the impact of lower volumes.
Textron Systems backlog at the end of the fourth quarter was $2.8 billion, down $83 million from the end of third quarter 2013.
Industrial revenues and profits were up $67 million and $11 million, respectively, from the fourth quarter of 2012, primarily reflecting higher volumes.
Finance segment revenues decreased $9 million compared to the fourth quarter of 2012. The segment reported a profit of $2 million, flat with last year’s fourth quarter.
Conference Call Information
Textron will host its conference call today, January 22, 2014 at 8:00 a.m. (Eastern) to discuss its results and outlook. The call will be available via webcast at www.textron.com or by direct dial at (800) 230-1092 in the U.S. or (612) 234-9960 outside of the U.S. (request the Textron Earnings Call).
In addition, the call will be recorded and available for playback beginning at 10:30 a.m. (Eastern) on Wednesday, January 22, 2014 by dialing (320) 365-3844; Access Code: 265928.
A package containing key data that will be covered on today’s call can be found in the Investor Relations section of the company’s website at www.textron.com.
About Textron Inc.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at www.textron.com.
Adjusted earnings per share from continuing operations and manufacturing cash flow before pension contributions are non-GAAP measures that are defined and reconciled to GAAP in an attachment to this release.
Certain statements in this release and other oral and written statements made by us from time to time are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which may describe strategies, goals, outlook or other non-historical matters, or project revenues, income, returns or other financial measures, often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “guidance,” “project,” “target,” “potential,” “will,” “should,” “could,” “likely” or “may” and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In addition to those factors described under “Risk Factors” in our Annual Report on Form 10-K, among the factors that could cause actual results to differ materially from past and projected future results are the following: interruptions in the U.S. Government’s ability to fund its activities and/or pay its obligations; changing priorities or reductions in the U.S. Government defense budget, including those related to military operations in foreign countries; our ability to perform as anticipated and to control costs under contracts with the U.S. Government; the U.S. Government’s ability to unilaterally modify or terminate its contracts with us for the U.S. Government’s convenience or for our failure to perform, to change applicable procurement and accounting policies, or, under certain circumstances, to withhold payment or suspend or debar us as a contractor eligible to receive future contract awards; changes in foreign military funding priorities or budget constraints and determinations, or changes in government regulations or policies on the export and import of military and commercial products; volatility in the global economy or changes in worldwide political conditions that adversely impact demand for our products; volatility in interest rates or foreign exchange rates; risks related to our international business, including establishing and maintaining facilities in locations around the world and relying on joint venture partners, subcontractors, suppliers, representatives, consultants and other business partners in connection with international business, including in emerging market countries; our Finance segment’s ability to maintain portfolio credit quality or to realize full value of receivables; performance issues with key suppliers or subcontractors; legislative or regulatory actions, both domestic and foreign, impacting our operations or demand for our products; our ability to control costs and successfully implement various cost-reduction activities; the efficacy of research and development investments to develop new products or unanticipated expenses in connection with the launching of significant new products or programs; the timing of our new product launches or certifications of our new aircraft products; our ability to keep pace with our competitors in the introduction of new products and upgrades with features and technologies desired by our customers; increases in pension expenses or employee and retiree medical benefits; and continued demand softness or volatility in the markets in which we do business; the inability to complete announced acquisitions; Difficulty or unanticipated expenses in connection with integrating acquired businesses; the risk that anticipated synergies and opportunities as a result of acquisitions will not be realized or the risk that acquisitions do not perform as planned, including, for example, the risk that acquired businesses will not achieve revenue projections.
Doug Wilburne, 401-457-2288
Justin Bourdon, 401-457-2288
David Sylvestre, 401-457-2362