Textron [TXT] yesterday posted strong second quarter financials on the strength of increased demand for its business jets and commercial helicopters and a swing to a profit in its Finance segment.
Net income nearly doubled to $172 million, 58 cents earnings per share (EPS), from $90 million (29 cents EPS), trumping consensus estimates by 14 cents per share. Segment income at the Bell helicopter operations and the Cessna aircraft division accounted for most of the profit gains followed by the turnaround at Finance and a small gain in the Industrial business.
The company attributed the increased profits mainly to higher sales. Company-wide sales increased nearly 11 percent to $3 billion from $2.7 billion.
Bell was the main driver behind the sales gains due to strong sales of commercial helicopters. Revenues were up at Cessna on higher business jet deliveries.
Textron Systems, the company’s segment that relies on the Defense Department and international defense customers for its business, posted a decline in sales and profits on lower volumes for sensor fuzed weapons and armored security vehicles. While sales in this segment are currently below the flat year-end forecast, company officials said yesterday that recent wins for a Canadian armored vehicle program, an amphibious landing craft program for the Navy, and upgrades for the Army’s Shadow tactical unmanned aircraft systems give them confidence that Textron Systems will finish 2012 on target.
Despite the strong top and bottom line performance, Textron maintained its outlook for the year given continued global economic uncertainty. That uncertainty will likely impact the company’s customers, Scott Donnelly, Textron’s chairman and CEO, said on the earnings call.