28 Jan 15. Textron Inc. (NYSE: TXT) reported fourth quarter 2014 income from continuing operations of $0.76 per share, up 26.7 percent from $0.60 per share in the fourth quarter of 2013. Revenues in the quarter were $4.1bn, up 16.8 percent from $3.5bn in the fourth quarter of 2013. Beechcraft, which was acquired in March, 2014, contributed $556m to the increase in revenues. Textron segment profit in the quarter was $398 m, up $91m from the fourth quarter of 2013. Fourth quarter manufacturing cash flow before pension contributions was $449m compared to $774m during last year’s fourth quarter.
“Overall, we had a strong fourth quarter, with double digit revenue growth at Textron Aviation, Textron Systems and Industrial,” said Textron Chairman and CEO Scott C. Donnelly. “Operationally, we achieved year-over-year margin improvement in the quarter at Textron Aviation, Bell and Industrial and solid cash generation across all of our businesses.”
Textron fourth quarter 2014 results included $13m in restructuring costs related to the Beechcraft acquisition and Textron Aviation segment profit reflected an $8m negative impact from fair value step-up adjustments to Beechcraft inventories sold during the quarter. Full-year income from continuing operations was $2.15 per share, compared to $1.75 in 2013. Full-year 2014 results included $52m in acquisition and restructuring costs related to the Beechcraft acquisition and Textron Aviation segment profit reflected a $6m impact from fair value step-up adjustments to Beechcraft inventories sold during the year. Full-year 2014 manufacturing cash flow before pension contributions was $753m compared to $256m in 2013.
Outlook
Textron is forecasting 2015 revenues of approximately $14.4bn and earnings per share from continuing operations in the range of $2.30 to $2.50. The company is estimating cash flow from continuing operations of the manufacturing group before pension contributions will be between $550 and $650m with planned pension contributions of about $80m.
Donnelly continued, “2014 was an important year as we made significant investments in both acquisitions and new product development to support the long-term growth of our businesses. Our outlook for 2015 reflects the early benefits of those actions and we intend to continue making investments to support ongoing growth and create long-term shareholder value.”
Fourth Quarter Segment Results
Textron Aviation
Revenues at Textron Aviation were up $597m, primarily reflecting the impact of the Beechcraft acquisition, higher volumes and favorable mix. Textron Aviation delivered 55 new jets in the quarter, down from 62 jets in last year’s fourth quarter, and 41 King Air turboprops. Textron Aviation recorded a segment profit of $130m in the fourth quarter compared to $33m a year ago in our Cessna segment. The increase reflects improved performance, including the impact of the Beechcraft acquisition, and favorable volume, mix and pricing. Textron Aviation backlog at the end of the fourth quarter was $1.4bn, approximately flat with the end of the third quarter.
Bell
Bell revenues decreased $304m, primarily the result of lower V-22 and commercial deliveries. Bell delivered 7 V-22’s and 7 H-1’s in the quarter, compared to 13 V-22’s and 6 H-1’s in last year’s fourth quarter and 57 commercial helicopters, compared to 75 units last year. Segment profit decreased $32m primarily due to the lower volumes partially offset by favorable performance. Bell backlog at the end of the fourth quarter was $5.5bn, up $192m from the end of the third quarter.
Textron Systems
Revenues at Textron Systems increased $212m, primarily reflecting higher Unmanned Systems volumes and the impact of acquisitions partially offset by lower Marine and Land Systems volumes. Segment profit was up $10m, reflecting the higher volumes. Textron Systems’ backlog at the end of the fourth quarter was $2.8bn, down $336m from the end of the third quarter.
Industria