Cessna, Bell Parent Textron Reports 2Q Loss
Textron, parent company of Cessna Aircraft and Bell Helicopter, today reported a net loss of $58 million in the second quarter, compared with a $258 million profit in the year-ago period. Revenues were $2.6 billion, down 29 percent from the second quarter of last year. The company also downgraded its revenue forecast this year from $11 billion to $10.6 billion, mainly due to further reductions in the Cessna Citation production rate, charges to downsize Cessna’s workforce and one-time costs to cancel development of the Citation Columbus. Textron for the third time lowered this year’s Citation delivery estimate; the target now is 275 jets, down from a previous 290 to 300. At Cessna, second-quarter revenues decreased $630 million from the same period last year, reflecting delivery of 84 Citations versus 117 in the second quarter last year. Profit at the aircraft manufacturer fell $214 million to $48 million, while the backlog as of June 30 stood at $8.2 billion, a decline of $4.8 billion from the first quarter. There were order cancellations for 243 jets in the quarter, which included all 74 of the now-defunct Columbus on order, while many of the remaining 169 were “fractional cancellations.” Bell Helicopter fared better, with second-quarter revenues of $670 million, down $28 million from the same period last year. However, profit increased $4 million to $72 million. Bell’s backlog at the end of June was $5.9 billion, down $231 million from March 31.