Textron Inc. today reported third quarter 2022 income from continuing operations of $1.06 per share, compared with $0.82 per share, or $0.85 per share of adjusted income from continuing operations, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, in the third quarter of 2021.
“In the quarter, we saw higher segment profit margin and strong cash generation,” said Textron Chairman and CEO Scott C. Donnelly. “The operating results demonstrate the resiliency of our business segments while navigating ongoing supply chain and labor challenges.”
Cash Flow
Net cash provided by operating activities of the manufacturing group for the third quarter was $356 million, compared to $333 million last year. Manufacturing cash flow before pension contributions, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, totaled $292 million for the third quarter, compared to $271 million last year. Year to date, manufacturing cash flow before pension contributions totaled $810 million.
In the quarter, Textron returned $200 million to shareholders through share repurchases. Year to date, share repurchases totaled $639 million.
Outlook
Textron now expects 2022 earnings per share from continuing operations to be in a range of $3.90 to $4.00. Textron also expects 2022 manufacturing cash flow before pension contributions to be in a range of $1.1 billion to $1.2 billion, up $300 million from the previous outlook, with planned pension contributions of $50 million.
Third Quarter Segment Results
Textron Aviation
Revenues at Textron Aviation of $1.2 billion were down $14 million from the third quarter of 2021, largely due to lower Citation jet and pre-owned volume, partially offset by favorable pricing and higher aftermarket volume.
Textron Aviation delivered 39 jets in the quarter, down from 49 last year, and 33 commercial turboprops, down from 35 in last year’s third quarter.
Segment profit was $139 million in the third quarter, up $41 million from a year ago, largely due to favorable pricing, net of inflation of $31 million.
Textron Aviation backlog at the end of the third quarter was $6.4 billion.
Bell
Bell revenues in the quarter were $754 million, down $15 million from last year, due to lower military revenues of $112 million, primarily in the H-1 program due to lower aircraft and spares volume, offset by higher commercial revenues of $97 million.
Bell delivered 49 commercial helicopters in the quarter, up from 33 last year.
Segment profit of $85 million was down $20 million from last year’s third quarter, primarily reflecting lower volume and mix, partially offset by favorable pricing, net of inflation.
Bell backlog at the end of the third quarter was $4.9 billion.
Textron Systems
Revenues at Textron Systems were $292 million, down $7 million from last year’s third quarter, largely due to lower volume.
Segment profit of $37 million was down $8 million, compared with the third quarter of 2021, primarily due to lower volume and mix.
Textron Systems’ backlog at the end of the third quarter was $2.0 billion.
Industrial
Industrial revenues were $849 million, up $119 million from last year’s third quarter, primarily due to higher volume and mix of $95 million and a $58 million favorable impact from pricing, principally in the Specialized Vehicles product line, partially offset by an unfavorable impact of $34 million from foreign exchange rate fluctuations.
Segment profit of $39 million was up $16 million from the third quarter of 2021, primarily due to higher volume and mix.
Textron eAviation
Textron eAviation segment revenues were $5 million and segment loss was $8 million in the third quarter of 2022, which reflected the operating results of Pipistrel along with research and development costs for initiatives related to the development of sustainable aviation solutions.
Finance
Finance segment revenues were $11 million, and profit was $7 million.