Textron Inc. (NYSE: TXT), Providence, RI, reported sales for the second quarter of $2.8 billion, down 6 percent from the second quarter of 2012, primarily reflecting lower business jet deliveries.
Sales at Cessna decreased $203 million during the second quarter, and the segment reported a loss of $50 million compared to a profit of $35 million a year ago, reflecting the lower jet deliveries and $28 million in pre-tax severance costs. Cessna backlog at the end of the second quarter was $1 billion, down $23 million from the first quarter.
Bell sales decreased $31 million in the second quarter from the same period in 2012. Segment profit decreased $17 million, primarily reflecting an unfavorable mix and lower commercial aircraft deliveries. Backlog at the end of the second quarter was $7 billion, down $137 million from the first quarter.
Textron Systems sales increased $33 million from the prior year, primarily due to higher volumes in the unmanned aircraft systems and weapons and sensors product lines, partially offset by lower deliveries at marine & land and mission support. Segment profit decreased $6 million, reflecting a higher mix of lower-margin service contracts. End-of-quarter backlog was $2.6 billion, down $165 million from the first quarter.
Industrial sales increased $45 million, reflecting higher volumes and an increase from acquisitions. Segment profit increased $18 million.
Finance segment sales decreased $24 million compared to the second quarter of 2012. The segment reported a profit of $15 million compared to $22 million in last year’s second quarter.
“Despite weakness in European markets, we saw solid growth at Textron Systems and our industrial businesses, as well as continued strong commercial orders at Bell,” CEO Scott C. Donnelly said. “On the other hand, business jet demand continued to be soft, but we believe the cost, production and pricing actions we took are the right actions to support future growth at Cessna.”
For the first six months, sales for Textron were $5.7 billion, a 3 percent decline from the prior-year period. Profit fell 20 percent to $232 million.
