Textron Inc. (NYSE: TXT), Providence, RI, reported sales for the third quarter ended Oct. 2, 2010, were $2.5 billion, down 2.7 percent from last year’s third quarter. The manufacturer recorded a loss of $48 million for the period, compared to profit of $4 million for the third quarter 2009.
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For the first nine months, sales were $7.4 billion, down 3.9 percent from the same period a year ago. Profit declined 18.8 percent to $26 million.
\”Our third quarter performance reflected the ramp-up in military programs at Bell, strong year-over-year growth in our Industrial segment and continued focus on cost productivity and operational execution across all of our manufacturing businesses,\” CEO Scott C. Donnelly said.
Bell’s revenues increased $197 million in the third quarter, while segment profit increased $28 million. Bell backlog decreased $537 million from the end of second quarter to $6.5 billion
Cessna’s revenues decreased $290 million in the third quarter from the same period in the prior year, reflecting lower new aircraft sales, including the delivery of 26 jets compared with 68 in the corresponding period last year. However, aftermarket volumes were up in the quarter. Segment profit decreased $63 million. Cessna backlog ended the third quarter at $3.4 billion, down $321 million from the end of the second quarter.
Revenues at Textron Systems decreased $42 million primarily due to lower volume. Segment profit decreased $18 million due to lower volume, pricing and unfavorable mix. Textron Systems’ backlog at the end of the third quarter was $1.6 billion, essentially the same from the end of the second quarter.
Industrial segment revenues increased $77 million due to higher volume, partially offset by an unfavorable foreign exchange impact. Segment profit increased $31 million due to higher volume and improved cost performance, partially offset by higher inflation.
Finance segment revenues decreased $12 million, and segment loss was lower by $13 million reflecting lower net portfolio losses, loan loss provisions, and selling and administrative expenses, partially offset by the impact of lower average finance receivables, lower accretion from previous mark-to-market adjustments, a higher interest rate on debt and the non-recurrence of last year’s gains on debt extinguishment.
