Textron Inc. reported its second quarter 2017 results, including an increased revenue of $3.6 billion, up 2.6 percent from the second quarter of 2016. Textron segment profit in the quarter was $295 million, down $33 million from the second quarter of 2016.
“Revenues were up in the quarter primarily driven by the Arctic Cat acquisition,” said Textron chairman and CEO Scott C. Donnelly. “We saw strong performance at Bell and were encouraged by the continued strengthening in commercial helicopter demand.”
Textron also reported income from continuing operations of $0.57 per share or $0.60 per share of adjusted income from continuing operations compared to $0.66 per share in the second quarter of 2016.
During this year’s second quarter, the company recorded $13 million of pre-tax special charges ($0.03 per share, after-tax).
Net cash provided by operating activities of continuing operations of the manufacturing group for the second quarter totaled $413 million, compared to $107 million in last year’s second quarter. Manufacturing cash flow before pension contributions, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, totaled $341 million compared to a use of cash of $26 million during last year’s second quarter.
Donnelly continued, “we saw strong year over year cash performance principally driven by improvements in working capital. We are continuing to invest in our businesses, while taking the opportunity to buy back shares.”
Textron reiterated its full-year 2017 GAAP earnings per share from continuing operations guidance of $2.22 to $2.45, or $2.40 to $2.60 on an adjusted basis (non-GAAP), which is reconciled to GAAP in an attachment to this release. The company also confirmed its net cash provided by operating activities of continuing operations of the manufacturing group guidance of $1,045 million to $1,145 million and manufacturing cash flow before pension contributions (the non-GAAP measure) of $650 to $750 million.
Second Quarter Segment Results
Industrial revenues increased $109 million largely due to the impact of the Arctic Cat acquisition.
Segment profit was down $17 million due to an operating loss at Arctic Cat, which was consistent with our integration plan, and unfavorable pricing and inflation.
Finance segment revenues decreased $2 million and segment profit decreased $2 million.