Business jets maker Textron Inc. (TXT) on Wednesday reported a significant increase in profit for the first quarter, amid improvement in demand for commercial aircraft and industrial products. Earnings and revenues topped Wall Street estimates. The company confirmed its full year outlook.
Net income for the quarter surged to $118 million or $0.40 per share from $29 million or $0.09 per share last year.
Income from continuing operations increased to $0.41 per share from $0.10 per share in the prior year. On average, 13 analysts polled by Thomson Reuters expected the company to earn $0.35 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues increased to $2.86 billion from $2.48 billion. Analysts had a consensus revenue estimate of $2.70 billion for the quarter.
Revenues at Cessna increased 20 percent to $669 million. The increase reflects the delivery of 38 new Citation jets compared to 31 in last year's first quarter, as well as higher aftermarket volumes.
Bell revenues were $994 million, up about 33 percent from last year. Bell delivered 30 commercial aircraft in the quarter, up from 15 commercial units last year. The division also delivered more 10 V-22's and 7 H-1's in the just concluded quarter.
Textron Chairman and CEO Scott Donnelly said, "The demand environment for our commercial aircraft and industrial products continued to improve, which reinforces our confidence in our outlook for the year."
Textron reiterated its 2012 guidance of earnings per share from continuing operations of $1.80 to $2.00 and revenues of around $12.5 billion. Analysts expect the company to earn $1.91 per share on revenues of $12.35 billion for the year.
TXT closed on Tuesday at $27.65, up from the prior close of $27.01, on a volume of 3.78 million shares. The stock is up 1 percent in pre-market activity.
by RTT Staff Writer
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