PROVIDENCE, R.I. - For the third quarter of 2016 , Textron reported revenues of $3.25 billion, up 2.2 percent from $3.18 billion in the third quarter of 2015. Net income for the quarter was $421 million compared to $176 million in the year ago period
"We had good execution in the quarter with margin improvements at Systems and Bell," said Textron Chairman and CEO Scott C. Donnelly. "At Aviation, we continue to be encouraged by the strong market acceptance of the Latitude and progress on our new Longitude platform with a very successful first flight two weeks ago."
Donnelly added, "We are also pleased with progress on the Scorpion and have accelerated investment in this program to support the accreditation process and increased customer engagement."
On August 30, 2016, Textron announced a restructuring plan with estimated pretax charges in the range of $110 million to $140 million with expected cash outlays in the range of $65 million to $85 million. The company now estimates pre-tax charges will be in the range of $140 million to $170 million, with expected cash outlays in the range of $100 million to $120 million.
INDUSTRY SEGMENTS
Textron Aviation
Revenues at Textron Aviation were $1.2 billion for the quarter compared to $1.16 billion in the third quarter of 20215 million, primarily due to volume and mix.
Textron Aviation delivered 41 new Citation jets and 29 King Air turboprops in the quarter, compared to 37 jets and 29 King Airs in last year’s third quarter.
Textron Aviation recorded a segment profit of $100 million in the third quarter compared to $107 million a year ago. The decrease in segment profit in the third quarter was primarily due to the mix of products sold.
Textron Aviation backlog at the end of the third quarter was $1.1 billion, approximately flat with the second quarter.
Bell
Bell revenues were down $22 million to $734 million (2014: $756 million), as Bell delivered 25 commercial helicopters, compared to 45 units last year. This was partially offset by the military business with 6 V-22’s in the quarter, up from 4 V-22’s in last year’s third quarter and, 8 H-1’s compared to 5 H-1’s last year.
Segment profit was down $2 million to $97 million, primarily due to the lower commercial aircraft volumes.
Bell backlog at the end of the third quarter was $4.9 billion, approximately flat with the second quarter.
Textron Systems
Revenues at Textron Systems decreased $7 million to $413 million, primarily due to lower Weapons and Sensors volume partially offset by higher revenues at Marine and Land Systems. Segment profit was up $5 million to $44 million, reflecting improved performance.
Textron Systems’ backlog at the end of the third quarter was $2.2 billion, down $74 million from the end of the second quarter.
Industrial
Industrial revenues increased $58 million to $886 million (2014: $828 million) due to the impact of acquired businesses and higher volumes.
Segment profit increased $5 million to $66 million, largely reflecting improved performance.
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