Manufacturer Textron Inc. (NYSE: TXT), Providence, RI, reported sales in the second quarter 2010 were $2.7 billion, up 3.7 percent from last year

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“Solid manufacturing performance in the quarter reflected our lower cost structure, good operational execution and the ramp-up in our military programs at Bell,” said Textron President and CEO Scott C. Donnelly.

Cessna’s revenues decreased $236 million in the second quarter, primarily reflecting lower new aircraft deliveries, including 43 jets compared with 84 jets in the corresponding period last year. These decreases were partially offset by higher aftermarket and used aircraft volumes.

Segment profit decreased $45 million due to the lower volume and a reduction in deposit forfeiture income, partially offset by lower used aircraft write-downs, inventory reserves and selling and administrative expenses.

Cessna backlog ended the second quarter at $3.7 billion, down $400 million from the end of the first quarter.

Bell’s revenues increased $153 million in the second quarter, reflecting higher V-22 and H-1 deliveries and higher spares and support volume, partially offset by lower commercial aircraft volume.

Segment profit increased $36 million due to improved performance, higher military volume and commercial aircraft pricing in excess of inflation. The improved performance reflects recognition of expected reimbursements for prior-period H-1 and V-22 program costs and the non-recurrence of costs related to the termination of certain commercial models in 2009.

Bell backlog increased $200 million from the end of first quarter to $7.1 billion.

Textron Systems revenue increased $57 million primarily due to higher Unmanned Aircraft Systems volume. Segment profit increased $15 million due to the impact of higher volume and improved performance. Textron Systems’ backlog at the end of the second quarter was $1.6 billion, an increase of $200 million from the end of the first quarter.

Industrial revenues increased $153 million due to higher volumes, partially offset by an unfavorable foreign exchange impact. Segment profit increased $39 million due to higher volumes and improved cost performance, partially offset by higher inflation.

Finance revenues decreased $30 million largely due to the non-recurrence of last year’s gains on debt extinguishment and lower average finance receivables, partially offset by reduced portfolio losses. Finance segment loss improved $28 million reflecting lower loan loss provisions, portfolio losses and selling and administrative expenses, partially offset by the non-recurrence of gains on debt extinguishment and the impact of lower average finance receivables