Weighed down by reduced demand for business jets and a loss at its finance unit, Textron [TXT] yesterday posted a steep decline in operating profits amid a decline in sales, although the multi-industrial firm still eked out a net profit in its third quarter.

Textron posted net income of $4 million, one cent earnings per share (EPS), compared to $206 million (83 cents EPS) a year ago. Earnings from continuing operations were $6 million (2 cents EPS), which beat analysts expectations of a loss of three cents EPS.

Sales dropped 27 percent to $2.5 billion from $3.5 billion a year ago. Free cash flow from Textron’s manufacturing operations was $327 million.

Restructuring charges gouged $42 million from third quarter earnings. For the year, Textron expects to incur $240 million in restructuring charges as it reorganizes amid reduced demand for its products.

Operating profits fell nearly 70 percent to $121 million. At its Cessna aircraft-making operations, deliveries of Citation jets were down nearly half to 68 aircraft. Fewer aircraft deliveries combined with lower aftermarket volume along with idle capacity and a temporary plant shutdown drove profits down 87 percent at Cessna to $32 million.

The profit decline at Cessna was marginally offset by higher profits at Bell, which boosted operating profits 25 percent due to lower selling and administrative costs, a gain from terminated foreign exchange hedge contract, higher customer funded research and development, and better pricing. The improved profits at Bell came despite an 11 percent drop in sales due to lower commercial helicopter revenues.

Textron Systems was Textron’s only business unit with positive top and bottom line operating results. Sales were up on the company’s unmanned aircraft systems program, which helped the segment post a $1 million profit.