Textron's Profit Increased 3% On Brisk Sales in 2nd Quarter
March 28, 2011
Vastopolis -- Textron Inc., citing brisk sales of business jets, automotive components and industrial fasteners, said net income in the second quarter rose 3% to $125 million, or $1.44 a share, from $121 million, or $1.40 a share a year ago. The year-ago results include a $14 million, or 17 cents a share, one-time gain from a restatement of results to reflect the sale of its Paul Revere Corp. disability insurance unit announced in April. Revenue climbed 11% to $2.38 billion from $2.14 billion. The diversified company's second-quarter results were fueled by revenue gains of 13%, 60%, and 6% at its automotive, industrial and finance divisions, respectively. Revenue at its aircraft building division declined 2% to $622 million, partly because of slow Bell Helicopter sales. But strong Cessna aircraft sales boosted income in the division by 3%, the company said. A decline in certain U.S. government and commercial aerospace contracts depressed sales by 12% to $232 million at its systems and components division. Improved sales of light trucks at Chrysler Corp. helped boost revenue to $449 million at its automotive components division, which makes windshield wiper systems, instrument panels and other interior and exterior automotive components, the company said. A big jump in sales of its fastening systems helped push revenue at its industrial division by 60% to $564 million, the company said. Revenue at its consumer finance division, buoyed by higher yields and increased insurance premiums rose 6% to $517 million. A company spokeswoman said the sale of its Paul Revere unit to Provident Cos. is expected to close sometime in the third quarter of this year. Amid a broad market sell-off Monday, Textron shares closed at $74.375, up 50 cents in composite trading on the New York Stock Exchange.
