(STL.News) – Textron Inc. (NYSE: TXT) today reported third quarter 2019 net income of $0.95 per share, compared to $0.61 per share last year of adjusted net income, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, or net income of $2.26 per share in the third quarter of 2018, which included the gain on the sale of the Tools & Test product line of $1.65 per share.
“Revenues were higher in the quarter primarily driven by Textron Aviation and Industrial, and we continued to have good execution with solid margin performance across our businesses,” said Textron Chairman and CEO Scott C. Donnelly.
Net cash provided by operating activities of the manufacturing group for the third quarter totaled $238 million, compared to $319 million in last year’s third quarter. Manufacturing cash flow before pension contributions, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, totaled $181 million compared to $259 million last year.
In the quarter, Textron returned $109 million to shareholders through share repurchases.
Textron now expects 2019 earnings per share to be in a range of $3.70 to $3.80.
The company revised its expectation for manufacturing cash flow before pension contributions to $600 to $700 million, from $700 to $800 million. Expected pension contributions remain at about $50 million.
Third Quarter Segment Results
Revenues at Textron Aviation of $1.2 billion were up $68 million from last year’s third quarter, primarily due to higher jet and aftermarket volume, partially offset by lower defense volume.
Textron Aviation delivered 45 jets, up from 41 last year, and 39 commercial turboprops, down from 43 last year.
Segment profit was $104 million in the third quarter, up $5 million from a year ago due to the higher volume and mix and favorable performance, partially offset by higher net inflation.
Textron Aviation backlog at the end of the third quarter was $1.9 billion.
Bell revenues were $783 million, up $13 million from last year on higher commercial revenues, partially offset by lower military volume.
Bell delivered 42 commercial helicopters in the quarter, down from 43 last year.
Segment profit of $110 million was down $3 million from a year ago, primarily due to an unfavorable impact from performance which included lower net favorable program adjustments, partially offset by higher volume and mix.
Bell backlog at the end of the third quarter was $5.6 billion.
Revenues at Textron Systems were $311 million, down $41 million from last year, primarily reflecting lower armored vehicle volume at Textron Marine & Land Systems.
Segment profit of $31 million was up $2 million from last year’s third quarter.
Textron Systems’ backlog at the end of the third quarter was $1.4 billion.
Industrial revenues of $950 million increased $20 million from a year ago, primarily related to a favorable impact from pricing within the Textron Specialized Vehicles product line.
Segment profit was up $46 million from the third quarter of 2018, largely due to favorable performance and a favorable impact from net pricing, primarily related to the Specialized Vehicles product line.
Finance segment revenues were down $1 million, and profit was up $2 million from last year’s third quarter.
Conference Call Information
Textron will host its conference call today, October 17, 2019 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) 230-1951 in the U.S. or (612) 288-0340 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 Thursday, October 17, 2019 by dialing (320) 365-3844; Access Code: 457172.
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.