Textron [TXT] on Tuesday posted higher net income in its second quarter due to strong results in its airplane making segment and lower interest and corporate expenses although sales dipped on fewer plane and helicopter deliveries.
Net income increased 16 percent to $167 million, 60 cents earnings per share (EPS), from $144 million (51 cents EPS), eking by consensus estimates by a penny. Sales fell 7 percent to $3.2 billion from $3.5 billion.
Overall segment operating profits were up less than a percent to $306 million due solely to a more than tripling of profits at the Textron Aviation segment to $88 million, which the company attributed to improved performance.
Operating profits at the company’s other three segments declined with Bell off 28 percent to $101 million on fewer V-22 tiltrotor and helicopter deliveries. Bell’s results a year ago benefited from a favorable adjustment to an Army helicopter program.
Textron Systems’ profit declined 38 percent to $21 million on due to an unfavorable product mix despite. Profit in the company’s Industrial segment was also down.
Bell was the biggest driver in Textron’s lower sales as revenue in the segment was down 23 percent to $850 million on fewer aircraft deliveries and the settlement over the Army helicopter program. Sales at Textron Aviation were down 5 percent to $1.1 billion on a change in mix of business jets delivered.
Sales at Textron Systems were up 14 percent to $322 million on higher volume in unmanned, marine and land systems.
Textron left its earnings guidance intact per share earnings from continuing operations between $2.30 and $2.50.