Textron Q2 Profit Tops View, But Revenues Miss; Confirms FY13 Profit View

(RTTNews) - Textron Inc. (TXT) reported that its second-quarter net income decreased to $113 million or $0.40 per share, from $172 million or $0.58 per share in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.38 per share for the quarter. Analysts' estimates typically exclude special items.

Segment profit was $213 million for the quarter, compared to $310 million in the second quarter of 2012, primarily reflecting lower business jet deliveries and $28 million in pre-tax severance costs recorded at Cessna, which were previously announced. Manufacturing cash flow before pension contributions was a $362 million use of cash during the second quarter compared to $121 million of cash generated during last year's second quarter. The company contributed $17 million to its pension plans during the second quarter.

Total revenues for the quarter declined to $2.84 billion from the prior year's $3.02 billion, primarily reflecting lower business jet deliveries. Nine analysts had consensus revenue estimate of $3.01 billion for the quarter.

Textron confirmed its 2013 earnings per share from continuing operations guidance of $1.90 to $2.10 and its expectation for cash flow from continuing operations of the manufacturing group before pension contributions of about $400 million with expected pension contributions of about $200 million. Analysts expect the company to report earnings of $2.02 per share for fiscal 2013.