Textron says Q2 profits up 23 per cent – strong order backlog at Cessna, Bell
18 Jul 2008
Textron has said second-quarter profits were up 23 per cent from the same period last year. Announcing the results, Textron reaffirmed its outlook for the remainder of 2008 and forecast a solid market for the Citation line into 2011. It also said it had an order backlog of 1,638 business jets.
Inspite of a negative economic outlook, domestically as well as abroad, ''the story at Cessna remains extremely strong,'' said Textron chairman, president and CEO Lewis Campbell.
The Wichita-based aircraft manufacturer expects to deliver 470 business jets this year.
Q2 2008 revenues at Cessna increased $289 million over the same period in 2007, with deliveries of 117 business jets, as against 95 the previous year. According to Lewis, Cessna's solid performance was mainly due to the growth in orders from outside the US.
Meanwhile Textron's helicopter unit, Bell Helicopter, also announced an increase in profits by $61 million over the previous period. It said this was in large part due to strong government orders.
As for its commercial helicopter business revenues, these increased by $5 million even as profit dipped by $3 million. The decrease in profit was attributed to ''inflation, unfavorable cost performance and lower volume.'' However, Textron noted that the backlog for its commercial helicopter unit was ''the largest we've ever had,'' with deliveries stretching into 2014.
