Lower profits at its Bell segment combined with acquisition and restructuring costs related to its purchase of Beechcraft in March drove earnings down at Textron Inc. [TXT] in the first quarter.
Net income dropped 29 percent to $85 million, 30 cents earnings per share (EPS), from $119 million (41 cents EPS), from a year ago. Excluding the impact of discontinued operations, per share earnings were 31 cents, three cents below consensus expectations.
Bell was the company’s only segment posting lower operating profits, down $33 million to $96 million on lower sales of V-22 tilt-rotors, H-1 helicopters, and commercial helicopters.
Textron said acquisition related expenses for Beechcraft lopped $11 million from earnings while restructuring costs around the deal chopped another $5 million.
Sales in the quarter were flat at $2.8 billion as gains at the company’s aircraft segment, Textron Aviation, and the Industrial segment, were offset by declines at Bell and Textron Systems. Beechcraft, which has been combined with the Cessna aircraft division, is part of Textron Aviation and added $101 million to sales in the quarter.
Textron lowered by 8 cents EPS its guidance for 2014 due to $46 million in acquisition and restructuring costs for Beechcraft. The outlook for earnings from continuing operations now stands at between $1.92 and $2.12 EPS.