Textron: Cessna’s 1Q Performance ‘Disappointing’
Cessna’s first-quarter revenues of $556 million were up by $123 million from the same period a year ago, but the Textron division still managed to sustain a larger operating loss–$38 million versus $24 million last year. Textron chairman and CEO Scott Donnelly called Cessna’s “underlying operational performance…disappointing.” Contributing to the losses were higher-than-expected costs in ramping up Citation CJ4 production, as well as eroding price margins due to inflation. On the bright side, Cessna’s first-quarter gross orders improved from last year, as did pre-owned Citation sales. Based on this positive trend, Donnelly expects Cessna to deliver “slightly” more Citations this year than the 179 it shipped last year.