Aircraft manufacturer Textron Aviation has recorded a decline in turboprop and jet deliveries in the second quarter, according to parent company Textron.
The fall in sales resulted in a 15 per cent reduction in revenue for the Wichita-based Beechcraft and Cessna manufacturer, who delivered two fewer business jets and 14 fewer turboprops than second quarter 2018.
Lower order activity from late May onwards was, according to the company, “largely attributable to the uncertainties around tariffs and concerns about economic growth,” in reference specifically to Donald Trump’s tariff threats on Mexican products.
“There was a couple of specific transactions where customers that do a lot of business in Mexico and their business is dependent on that, and they got pretty rattled,” explained Textron Inc. CEO Scott Donnelly.
“This kind of came as quite a surprise and of course now it’s also gone away. But…there were very specific transactions that stopped because of that.”
However, some more positive economic signs ahead, including the Federal Reserve’s expected interest rate cut, point towards a more prosperous coming quarter.
“Our view going into the third quarter remains positive, and we expect deliveries and orders to ramp throughout the second half of the year driving revenue growth at [Textron] Aviation,” said Donnelly.