Cessna Jet Deliveries Fall Nearly 48% in 3Q
Cessna Aircraft and Bell Helicopter parent company Textron today said third-quarter revenues fell 27 percent, to $2.5 billion, while overall profits fell to $121 million versus $210 million in the year-ago period. At Cessna, revenues in the quarter decreased 41.8 percent, to $593 million, compared with the same period last year, primarily due to delivery of 68 Citations in the three-month period versus “an all-time quarterly high” of 124 jets last year, a drop of nearly 48 percent. Lower aftermarket part sales also contributed to the lower revenues, though Cessna did see an increase in quarterly used aircraft sales, to $31 million. Profits at Cessna decreased $206 million due to lower sales volumes and costs associated with idle capacity and temporary plant shutdowns. Backlog at Cessna at the end of the third quarter was $6.9 billion, a decline of $1.3 billion from the second quarter and $9 billion less than it was just one year ago, a reflection of the 114 cancellations the aircraft manufacturer logged this year. However, Textron president and COO Scott Donnelly said he is “encouraged” by the fact that the business jet market is “strengthening.” Meanwhile, revenues at Bell fell a more modest 10.5 percent, or $74 million, while its profit increased by 16 percent due to various events. Bell’s backlog at the end of the third quarter was $5.6 billion, down $250 million from the end of last quarter.