Textron Inc. (TXT) cut its fourth-quarter earnings forecast on Monday and announced that it plans to exit most of its commercial finance business lines. The company also expanded its restructuring program, in light of the continuing economic weakness.
The company said that it will get rid of Textron Financial's commercial finance business other than that part of the unit that supports the financing of customer purchases of products it manufacture. This will be done through an orderly liquidation and selected sales, the firm said.
Previously, Textron had said that it would exit its Asset Based lending and Structured Capital segments, as well as some other business lines, totaling $2 billion in managed receivables. The new plan brings the total to $7.9 billion of the $11.4 billion that is in the firm's managed receivable portfolio.
"Executing this new strategic direction for TFC is expected to significantly enhance our long-term liquidity position in light of continuing disruption and instability in the capital markets," Textron Chairman, President and CEO Lewis Campbell said in a statement.
For its fourth-quarter results, Textron predicted a loss between $0.81 and $0.91 per share. Excluding one-time charges, the company projected a profit of $0.30 to $0.40 per share. The firm's previous earnings forecast called for a result between $0.80 and $0.90 per share.
Textron said it now sees fourth-quarter manufacturing segment profit to be $300 - $330 million. The firm had previously predicted a mark of $400 million.
Results for the quarter will include a mark-to-market adjustment related to Textron Financial, the company said, as well as a tax impact from the change of the financial unit's Canadian investment status. The quarter will also see goodwill impairment and restructuring charges.
"Continued weakening in economic conditions is also impacting customers of our manufacturing segments, especially at Cessna and Industrial, although we expect that better performance at Bell and Defense & Intelligence will partially offset the weakness," Campbell said.
Textron also expanded its restructuring program, due to the further decline in economic activity. The cost-cutting measures will result in the elimination of about 2,200 positions worldwide.
The company expects restructuring charges of about $65 million, to be recorded in the fourth quarter. About $20 million of the restructuring costs are non-cash, the company said.
Textron said it expects that further headcount reductions and other actions could lead to additional restructuring costs beyond those incurred in 2008.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.