Textron Inc., parent company of brands including Arctic Cat, today reported second quarter 2019 net income of $0.93 per share, compared to $0.87 per share in the second quarter of 2018.
“Operationally, we continued to have solid margin performance across our businesses with improvements in the quarter at Aviation and Industrial, and we remain on track for growth in the second half of the year,” said Textron Chairman and CEO Scott C. Donnelly.
Net cash provided by operating activities of the manufacturing group for the second quarter totaled $163 million, compared to $468 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 $102 million compared to $399 million last year.
In the quarter, Textron returned $159 million to shareholders through share repurchases.
Textron now expects 2019 earnings per share from continuing operations to be in a range of $3.65 to $3.85, up $0.10 from our previous outlook. Textron reiterated its expectation for cash flow from continuing operations of the manufacturing group before pension contributions of $700 to $800 million with planned pension contributions of about $50 million.
Donnelly continued, “We remain on target for a strong 2019 as we continue our focus on execution and earnings growth through the balance of the year.”
Second Quarter Segment Results
Revenues at Textron Aviation of $1.1 billion were down $153 million from last year’s second quarter, primarily due to lower volume and mix across the commercial turboprop and defense product lines.
Textron Aviation delivered 46 jets, down from 48 last year, and 34 commercial turboprops, down from 47 last year.
Segment profit was $105 million in the second quarter, up $1 million from a year ago as favorable performance was offset by the lower volume and mix.
Textron Aviation backlog at the end of the second quarter was $1.9 billion.
Bell revenues were $771 million, down 7% from last year, primarily on lower military volume.
Bell delivered 53 commercial helicopters in the quarter, down from 57 last year.
Segment profit of $103 million was down $14 million, primarily due to the lower military volume.
Bell backlog at the end of the second quarter was $6.0 billion.
Revenues at Textron Systems were $308 million, down from $380 million last year, primarily reflecting lower volume at TRU Simulation + Training and Unmanned Systems.
Segment profit was up $9 million from last year’s second quarter, primarily due to favorable performance which included a gain related to the formation of our new training business with FlightSafety International Inc.
Textron Systems’ backlog at the end of the second quarter was $1.4 billion.
Industrial (Sales of products from such brands as E-Z-GO, Cushman, Textron Off Road, Arctic Cat and more)
Industrial revenues of $1.0 billion decreased $213 million, largely related to the impact from the disposition of our Tools & Test product line and lower volume.
Segment profit was down $4 million from the second quarter of 2018, largely due to the impact from lower volume and the product line disposition, partially offset by favorable performance primarily related to the Specialized Vehicles product line.
Finance segment revenues were down $1 million, and profit was up $1 million from last year’s second quarter.