* EPS 27 cents/shr tops 9 cent Street view
* Revenue up 3.7 pct
* Hikes full year EPS forecast to 55 cents-65 cents
(Adds comparison with estimates, CEO quote, details)
BOSTON, July 21 Diversified U.S. manufacturer
Textron Inc (TXT.N) posted profit that blew past Wall Street's
expectations and sharply raised its 2010 earnings forecast,
citing the payoff of an aggressive cost-cutting plan.
The world's largest maker of corporate jets said on Wednesday
that it expects a full-year profit, excluding special charges, of
55 cents to 65 cents per share, higher than its previous forecast
of 30 cents to 50 cents.
The high end of its forecast would return Textron to growth
ahead of schedule. Chief Executive Scott Donnelly had previously
said the company would resume profit growth in 2011. On average,
analysts had looked for full-year profit of 50 cents per share,
according to Thomson Reuters I/B/E/S.
"Our sustained focus on operating productivity and ongoing
investments in our businesses should position us well for this
cycle," said Donnelly, a former General Electric Co (GE.N)
executive who became Textron's CEO on Dec. 1.
Its second quarter earnings came to $82 million, or 27
cents per share, compared with a net loss of $58 million, or 22
cents per share, a year earlier.
Revenue rose 3.7 percent to $2.71 billion percent as demand
for business aircraft remained weak.
Analysts, on average, looked for profit of 9 cents per
share, on $2.49 billion in revenue.
The Providence, Rhode Island-based company, which also
makes Bell helicopters and EZ-Go golf carts, is coping with
weak demand for many of its products, but has boosted earnings
by cutting jobs and scaling back its finance arm.
Textron shares have fallen about 7 percent so far this
year, a time period when the Standard & Poor's capital goods
industry group .GSPIC has risen almost 1 percent.
Under Donnelly's leadership, the company has pulled sharply
back on its financing operations, trimming that unit to focus
on financing sales of equipment made by Textron businesses.
Its rivals include the Gulfstream unit of General Dynamics
Corp (GD.N) and Canada's Bombardier Inc (BBDb.TO) in corporate
jets, and United Technologies Corp (UTX.N) in helicopters.
(Reporting by Scott Malone; Editing by Derek Caney)