Second-quarter revenues at Textron Aviation fell $25 million year-over-year, to $1.171 billion, due in part to fewer King Air deliveries and partially offset by higher business jet volume and firmer pricing, Textron chairman and CEO Scott Donnelly said this morning during an investor call. The division recorded a $54 million profit in the second quarter versus $81 million a year ago, primarily due to lower volume and less favorable mix.

Textron Aviation delivered 46 Citations in the quarter, one more than a year ago, and 19 King Airs, down from 23 of the turboprop twins in last year’s second quarter. According to Donnelly, business jet demand is “relatively flattish” and “still North America-centric,” adding that he does not anticipate these dynamics to change before year-end. Meanwhile, the King Air market is more of an “international business” that is being stunted by the strong U.S. dollar, he said.

Donnelly said he believes that some potential U.S. business jet buyers are sitting on the sidelines while waiting for Congress to tackle tax reform. “In my view, tax reform will lead to more capital expenditure spending,” he noted.

Aviation backlog at the end of the second quarter was $1 billion, approximately unchanged from the end of the first quarter.