Textron Inc. reported third quarter 2017 income from continuing operations of $0.60 per share or $0.65 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, compared to $1.10 per share or $0.61 per share (non-GAAP) of adjusted income from continuing operations in the third quarter of 2016. During this year’s third quarter, the company recorded $25 million of pre-tax special charges ($0.05 per share, after-tax).
Revenues in the quarter were $3.5 billion, up 7.2 percent from the third quarter of 2016. Textron segment profit in the quarter was $295 million, down $15 million from the third quarter of 2016.
“Growth in the third quarter was the result of strong commercial demand at Bell, increased deliveries at Textron Systems and higher revenues at Industrial due to the acquisition of Arctic Cat,” said Textron Chairman and CEO Scott C. Donnelly.
Net cash provided by operating activities of continuing operations of the manufacturing group for the third quarter totaled $100 million, compared to $178 million in last year’s third 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 $279 million compared to $94 million during last year’s third quarter. The company contributed $311 million to its pension plans during the quarter.
The company is increasing its expected full-year manufacturing cash flow before pension contributions (a non-GAAP measure) by $150 million to a range of $800 to $900 million. With expected pension contributions of about $355 million, net cash provided by operating activities of continuing operations of the manufacturing group is now expected to be in a range of $895 million to $995 million.
Textron expects full-year 2017 GAAP earnings per share from continuing operations will be in the range of $2.20 to $2.30, or $2.40 to $2.50 on an adjusted basis (non-GAAP), which is reconciled to GAAP in an attachment to this release.
Third Quarter Segment Results
Revenues at Textron Systems were up $45 million, primarily due to higher volume in the Marine and Land Systems product line, partially offset by lower volume in the Weapons and Sensors product line.
Segment profit was down $4 million.
Textron Systems’ backlog at the end of the third quarter was $1.5 billion, down $85 million from the end of the second quarter.
Industrial revenues increased $156 million largely due to the impact of the Arctic Cat acquisition.
Segment profit was down $17 million due to unfavorable volume and mix, pricing and inflation.