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4 years ago
Textron profit falls as Cessna sales hit air pocket
October 18, 2013 / 11:05 AM / 4 years ago

Textron profit falls as Cessna sales hit air pocket

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(Reuters) - Cessna maker Textron Inc (TXT.N) reported a 31 percent fall in quarterly profit from continuing operations due to sluggish sales of its jets as small business owners delay spending in an uncertain U.S. economy.

Textron, the world's largest maker of business aircraft, also cut its full-year profit forecast to $1.75-$1.85 per share from $1.90-$2.10.

Sales of business jets were expected to improve in 2013 after being hit last year by fears of a "fiscal cliff". However, a cut in U.S. government spending has made small business owners - Cessna's main customers - cautious about their purchases.

Deliveries of Citation business jets at its Cessna division fell 39 percent to 25 aircraft in the third quarter.

Income from continuing operations fell to $98 million, or 35 cents per share, in the quarter ended September 28, from $142 million, or 48 cents per share, a year earlier.

Total revenue dropped 3.3 percent to $2.9 billion.

Textron also makes Bell helicopters and EZ-Go golf carts.

Providence, Rhode Island-based Textron's shares have gained about 10 percent in the past 12 months and have underperformed the S&P 500 .SPX index. They closed at $27.52 on the New York Stock Exchange on Thursday.

Reporting by Sagarika Jaisinghani in Bangalore; Editing by Sriraj Kalluvila

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