PROVIDENCE, R.I.--(BUSINESS WIRE)--Jan. 23, 2013-- Textron Inc. (NYSE: TXT) today reported fourth quarter 2012 income from continuing operations of $0.50 per share, compared to a loss of $0.06 per share in the fourth quarter of 2011.

This year’s fourth quarter results include a previously disclosed after-tax charge of $0.06 per share at Cessna related to an unfavorable business arbitration award. Last year’s fourth quarter included net charges of $0.55 per share.

Total revenues in the quarter were $3.4 billion, up 3.3% from the fourth quarter of 2011.

Full-year manufacturing cash flow before pension contributions was $793 million. The company contributed $224 million to its pension plans during the fourth quarter, bringing full-year contributions to $405 million. Textron’s consolidated net debt ended the year at $2.6 billion, down $974 million from the end of last year.

“Growth in the fourth quarter was the result of strong military and commercial demand at Bell and increased deliveries at Textron Systems, E-Z-GO and Jacobsen, partially offset by weakness in our automotive and business jet markets,” said Textron Chairman and CEO, Scott C. Donnelly.

Share Repurchases

During the fourth quarter, the company repurchased 11.1 million of its common shares under its previous share repurchase authorization. On January 22, 2013 Textron’s Board of Directors approved a new authorization for 25 million shares, under which the company intends to purchase shares to offset the impact of dilution from stock-based compensation and benefit plans and for opportunistic capital management purposes.

Outlook

Textron is forecasting 2013 revenues of approximately $12.9 billion, up about 6% from 2012. Earnings per share from continuing operations are expected to be in the range of $2.10 to $2.30. Cash flow from continuing operations of the manufacturing group before pension contributions is estimated to be between $500 and $550 million with planned pension contributions of about $200 million.

Donnelly continued, “In 2013, we anticipate growth in revenue at Cessna on a modest increase in jet deliveries, a higher revenue mix of business jets and growth in aftermarket, modest growth at Bell, led by an increase in commercial helicopter sales, growth at Systems and revenue up slightly at Industrial.”

Fourth Quarter Segment Results and Actions

Cessna

Revenues decreased $110 million, reflecting the delivery of 53 new Citation jets in the quarter, compared with 67 in last year’s fourth quarter.

Segment profit decreased $37 million, primarily due to a $27.4 million arbitration settlement charge and lower jet volumes.

Cessna backlog at the end of the fourth quarter was $1.1 billion, down $267 million from the end of the third quarter 2012.

Bell

Revenues increased $139 million in the fourth quarter from the same period in the prior year. Bell delivered 9 V-22’s, 6 H-1’s and 65 commercial aircraft in the quarter compared to 7 V-22’s, 6 H-1’s and 62 commercial units in last year’s fourth quarter.

Segment profit increased $10 million, reflecting higher volume and mix.

Bell backlog at the end of the fourth quarter was $7.5 billion, up $1.2 billion from the end of the third quarter 2012.

Textron Systems

Revenues at Textron Systems increased $58 million, reflecting higher deliveries in Unmanned Aerial Systems and Weapons and Sensors, partially offset by lower vehicle deliveries at Land and Marine.

Segment profit in the quarter was $36 million, up $44 million when compared to last year’s fourth quarter, which included $60 million in charges. Segment profit in this year’s fourth quarter reflected higher volumes, partially offset by a $19 million charge associated with the company’s fee-for-service unmanned aerial systems contracts.

Textron Systems backlog at the end of the fourth quarter was $2.9 billion, relatively flat with the end of third quarter 2012.

Industrial

Industrial revenues decreased $2 million from the fourth quarter of 2011. Segment profit decreased $6 million reflecting cost inflation in excess of related price increases.

Finance

Finance segment revenues increased $23 million compared to the fourth quarter of 2011. The segment reported a profit of $2 million compared to last year’s $232 million fourth quarter loss, which reflected a mark-to-market charge.

Since the end of the third quarter 2012, nonaccrual finance receivables decreased from $145 million to $143 million and sixty-day plus delinquencies decreased from $114 million to $90 million.

Finance receivables ended the quarter at $2.1 billion, reflecting liquidations of $65 million during the quarter.

Conference Call Information

Textron will host its conference call today, January 23, 2013 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) 230-1059 in the U.S. or (612) 234-9959 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 Wednesday, January 23, 2012 by dialing (320) 365-3844; Access Code: 235149.

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.

About Textron Inc.

Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at www.textron.com.

Non-GAAP Measures

Adjusted earnings per share from continuing operations and manufacturing cash flow before pension contributions are non-GAAP measures that are defined and reconciled to GAAP in an attachment to this release.

Forward-looking Information

Certain statements in this release and other oral and written statements made by us from time to time are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which may describe strategies, goals, outlook or other non-historical matters, or project revenues, income, returns or other financial measures, often include words such as “believe,” “expect,” “anticipate,” “intend," “plan,” “estimate,” “guidance,” “project,” “target,” “potential,” “will,” “should,” “could,” “likely” or “may” and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In addition to those factors described under “Risk Factors” in our Annual Report on Form 10-K, among the factors that could cause actual results to differ materially from past and projected future results are the following: changing priorities or reductions in the U.S. Government defense budget, including those related to military operations in foreign countries; our ability to perform as anticipated and to control costs under contracts with the U.S. Government; the U.S. Government’s ability to unilaterally modify or terminate its contracts with us for its convenience or for our failure to perform, to change applicable procurement and accounting policies, or, under certain circumstances, to withhold payment or suspend or debar us as a contractor eligible to receive future contract awards; changes in foreign military funding priorities or budget constraints and determinations, or changes in government regulations or policies on the export and import of military and commercial products; volatility in the global economy or changes in worldwide political conditions that adversely impact demand for our products; volatility in interest rates or foreign exchange rates; risks related to our international business, including establishing and maintaining facilities in locations around the world and relying on joint venture partners, subcontractors, suppliers, representatives, consultants and other business partners in connection with international business, including in emerging market countries; our Finance segment’s ability to maintain portfolio credit quality or to realize full value of receivables and of assets acquired upon foreclosure of receivables; performance issues with key suppliers or subcontractors; legislative or regulatory actions, both domestic and foreign, impacting our operations or demand for our products; our ability to control costs and successfully implement various cost-reduction activities; the efficacy of research and development investments to develop new products or unanticipated expenses in connection with the launching of significant new products or programs; the timing of our new product launches or certifications of our new aircraft products; our ability to keep pace with our competitors in the introduction of new products and upgrades with features and technologies desired by our customers; increases in pension expense or employee and retiree medical benefits; difficult conditions in the financial markets which may adversely impact our customers’ ability to fund or finance purchases of our products; and continued demand softness or volatility in the markets in which we do business.

Source: Textron

Textron
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