- EPS of $1.35; adjusted EPS of $1.54, up from $1.46 in prior
year
- Net cash from operating activities of $383 million in the
second quarter of 2024
- $358 million returned to shareholders through share repurchases
in the second quarter
Textron Inc. (NYSE: TXT) today reported second quarter 2024
income from continuing operations of $1.35 per share, as compared
to $1.30 per share in the second quarter of 2023. Adjusted income
from continuing operations, a non-GAAP measure that is defined and
reconciled to GAAP in an attachment to this release, was $1.54 per
share for the second quarter of 2024, compared to $1.46 per share
in the second quarter of 2023.
"In the quarter, our team delivered higher revenue, earnings per
share, and cash flow," said Textron Chairman and CEO Scott C.
Donnelly. "At Aviation and Bell, we continued to execute on key
programs, including the Citation Ascend and FLRAA."
Cash Flow
Net cash provided by operating activities of the manufacturing
group for the second quarter was $383 million, compared to $314
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 $320 million for the
second quarter, compared to $242 million last year.
In the quarter, Textron returned $358 million to shareholders
through share repurchases. Year to date, Textron has returned $675
million to shareholders through share repurchases.
Second Quarter Segment Results
Textron Aviation
Textron Aviation’s revenues were $1.5 billion, up $113 million
from last year's second quarter, reflecting higher pricing of $57
million and higher volume and mix of $56 million.
Textron Aviation delivered 42 jets in the quarter, down from 44
in the second quarter of 2023, and 44 commercial turboprops, up
from 37 in last year's second quarter.
Segment profit was $195 million in the second quarter, up $24
million from a year ago, reflecting higher volume and mix of $35
million, and a favorable impact from pricing, net of inflation, of
$22 million, partially offset by an unfavorable impact from
performance of $33 million.
Textron Aviation backlog at the end of the second quarter was
$7.5 billion.
Bell
Bell revenues were $794 million, up $93 million from the second
quarter of 2023, largely reflecting higher military volume of $104
million, primarily related to the FLRAA program, partially offset
by lower volume on the V-22 program.
Bell delivered 32 commercial helicopters in the quarter, down
from 35 in last year's second quarter.
Segment profit of $82 million was up $17 million from last
year's second quarter, largely due to a favorable impact from
performance of $39 million, which included lower research and
development costs, partially offset by mix.
Bell backlog at the end of the second quarter was $4.2
billion.
Textron Systems
Revenues at Textron Systems were $323 million, up $17 million
from last year's second quarter, primarily due to higher volume of
$14 million.
Segment profit of $35 million was down $2 million, compared with
the second quarter of 2023.
Textron Systems’ backlog at the end of the second quarter was
$1.7 billion.
Industrial
Industrial revenues were $914 million, down $112 million from
last year's second quarter, mainly due to lower volume and mix of
$119 million.
Segment profit of $42 million was down $37 million from the
second quarter of 2023, primarily due to lower volume and mix.
Textron eAviation
Textron eAviation segment revenues were $9 million and segment
loss was $18 million in the second quarter of 2024, compared with a
segment loss of $12 million in the second quarter of 2023.
Finance
Finance segment revenues were $12 million, and profit was $7
million.
Conference Call Information
Textron will host its conference call today, July 18, 2024 at
8:00 a.m. (Eastern) to discuss its results and outlook. The call
will be available via webcast at www.textron.com or by direct dial
at (844) 867-6169 in the U.S. or (409) 207-6975 outside of the
U.S.; Access Code: 8602005.
In addition, the call will be recorded and available for
playback beginning at 11:00 a.m. (Eastern) on Thursday, July 18,
2024 by dialing (402) 970-0847; Access Code: 4306608.
A package containing key data that will be covered on today’s
call can be found in the Investor Relations section of the
company’s website at www.textron.com.
About Textron Inc.
Textron Inc. is a multi-industry company that leverages its
global network of aircraft, defense, industrial and finance
businesses to provide customers with innovative solutions and
services. Textron is known around the world for its powerful brands
such as Bell, Cessna, Beechcraft, Hawker, Pipistrel, Jacobsen,
Kautex, Lycoming, E-Z-GO, Arctic Cat, and Textron Systems. For more
information visit: www.textron.com.
Forward-looking Information
Certain statements in this release and other oral and written
statements made by us from time to time are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements, which may
describe strategies, goals, outlook or other non-historical
matters, or project revenues, income, returns or other financial
measures, often include words such as “believe,” “expect,”
“anticipate,” “intend,” “plan,” “estimate,” “guidance,” “project,”
“target,” “potential,” “will,” “should,” “could,” “likely” or “may”
and similar expressions intended to identify forward-looking
statements. These statements are only predictions and involve known
and unknown risks, uncertainties, and other factors that may cause
our actual results to differ materially from those expressed or
implied by such forward-looking statements. Given these
uncertainties, you should not place undue reliance on these
forward-looking statements. Forward-looking statements speak only
as of the date on which they are made, and we undertake no
obligation to update or revise any forward-looking statements. In
addition to those factors described in our Annual Report on Form
10-K and our Quarterly Reports on Form 10-Q under “Risk Factors”,
among the factors that could cause actual results to differ
materially from past and projected future results are the
following: Interruptions in the U.S. Government’s ability to fund
its activities and/or pay its obligations; changing priorities or
reductions in the U.S. Government defense budget, including those
related to military operations in foreign countries; our ability to
perform as anticipated and to control costs under contracts with
the U.S. Government; the U.S. Government’s ability to unilaterally
modify or terminate its contracts with us for the U.S. Government’s
convenience or for our failure to perform, to change applicable
procurement and accounting policies, or, under certain
circumstances, to withhold payment or suspend or debar us as a
contractor eligible to receive future contract awards; changes in
foreign military funding priorities or budget constraints and
determinations, or changes in government regulations or policies on
the export and import of military and commercial products;
volatility in the global economy or changes in worldwide political
conditions that adversely impact demand for our products;
volatility in interest rates or foreign exchange rates and
inflationary pressures; risks related to our international
business, including establishing and maintaining facilities in
locations around the world and relying on joint venture partners,
subcontractors, suppliers, representatives, consultants and other
business partners in connection with international business,
including in emerging market countries; our Finance segment’s
ability to maintain portfolio credit quality or to realize full
value of receivables; performance issues with key suppliers or
subcontractors; legislative or regulatory actions, both domestic
and foreign, impacting our operations or demand for our products;
our ability to control costs and successfully implement various
cost-reduction activities; the efficacy of research and development
investments to develop new products or unanticipated expenses in
connection with the launching of significant new products or
programs; the timing of our new product launches or certifications
of our new aircraft products; our ability to keep pace with our
competitors in the introduction of new products and upgrades with
features and technologies desired by our customers; pension plan
assumptions and future contributions; demand softness or volatility
in the markets in which we do business; cybersecurity threats,
including the potential misappropriation of assets or sensitive
information, corruption of data or, operational disruption;
difficulty or unanticipated expenses in connection with integrating
acquired businesses; the risk that acquisitions do not perform as
planned, including, for example, the risk that acquired businesses
will not achieve revenue and profit projections; the impact of
changes in tax legislation; the risk of disruptions to our business
and the business of our suppliers, customers and other business
partners due to unexpected events, such as pandemics, natural
disasters, acts of war, strikes, terrorism, social unrest or other
societal or political conditions; and the ability of our businesses
to hire and retain the highly skilled personnel necessary for our
businesses to succeed.
TEXTRON INC.
Revenues by Segment and
Reconciliation of Segment Profit to Net Income
(Dollars in millions, except per
share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
REVENUES
MANUFACTURING:
Textron Aviation
$
1,475
$
1,362
$
2,663
$
2,511
Bell
794
701
1,521
1,322
Textron Systems
323
306
629
612
Industrial
914
1,026
1,806
1,958
Textron eAviation
9
11
16
15
3,515
3,406
6,635
6,418
FINANCE
12
18
27
30
Total revenues
$
3,527
$
3,424
$
6,662
$
6,448
SEGMENT
PROFIT
MANUFACTURING:
Textron Aviation
$
195
$
171
$
338
$
296
Bell
82
65
162
125
Textron Systems
35
37
73
71
Industrial
42
79
71
120
Textron eAviation
(18
)
(12
)
(36
)
(21
)
336
340
608
591
FINANCE
7
12
25
20
Segment profit (a)
343
352
633
611
Corporate expenses and other, net
(17
)
(21
)
(79
)
(60
)
Interest expense, net for Manufacturing
group
(20
)
(16
)
(35
)
(33
)
LIFO inventory provision
(27
)
(35
)
(47
)
(60
)
Intangible asset amortization
(9
)
(10
)
(17
)
(20
)
Special charges (b)
(13
)
—
(27
)
—
Non-service components of pension and
postretirement income, net
66
59
132
118
Income from continuing operations before
income taxes
323
329
560
556
Income tax expense
(63
)
(66
)
(99
)
(102
)
Income from continuing
operations
$
260
$
263
$
461
$
454
Discontinued operations, net of income
taxes
(1
)
—
(1
)
—
Net income
$
259
$
263
$
460
$
454
Earnings Per Share:
Income from continuing
operations
$
1.35
$
1.30
$
2.38
$
2.22
Diluted average shares outstanding
191,855,000
202,509,000
193,358,000
204,760,000
Income from continuing operations and
Diluted earnings per share (EPS) GAAP to Non-GAAP
reconciliation:
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Income from continuing operations -
GAAP
$
260
$
263
$
461
$
454
Add: LIFO inventory provision, net of
tax
20
26
35
45
Intangible asset amortization, net of
tax
7
7
13
15
Special charges, net of tax
9
—
20
—
Adjusted income from continuing
operations - Non-GAAP (a)
$
296
$
296
$
529
$
514
Diluted Earnings Per Share:
Income from continuing operations -
GAAP
$
1.35
$
1.30
$
2.38
$
2.22
Add: LIFO inventory provision, net of
tax
0.10
0.13
0.18
0.22
Intangible asset amortization, net of
tax
0.04
0.03
0.07
0.07
Special charges, net of tax
0.05
—
0.11
—
Adjusted income from continuing
operations - Non-GAAP (a)
$
1.54
$
1.46
$
2.74
$
2.51
(a)
Segment profit, adjusted income from
continuing operations and adjusted diluted earnings per share are
non-GAAP financial measures as defined in "Non-GAAP Financial
Measures and Outlook" attached to this release.
(b)
In the second quarter and first half of
2024, we recorded special charges of $13 million and $27 million,
respectively, in connection with the restructuring plan announced
at the end of 2023. These charges were largely related to headcount
reductions in the Industrial, Textron Systems and Bell
segments.
TEXTRON INC.
Condensed Consolidated Balance
Sheets
(In millions)
(Unaudited)
June 29, 2024
December 30,
2023
Assets
Cash and equivalents
$
1,345
$
2,121
Accounts receivable, net
847
868
Inventories
4,381
3,914
Other current assets
749
857
Net property, plant and equipment
2,500
2,477
Goodwill
2,295
2,295
Other assets
3,639
3,663
Finance group assets
671
661
Total Assets
$
16,427
$
16,856
Liabilities and Shareholders'
Equity
Current portion of long-term debt
$
357
$
357
Accounts payable
1,120
1,023
Other current liabilities
2,979
2,998
Other liabilities
1,828
1,904
Long-term debt
2,884
3,169
Finance group liabilities
407
418
Total Liabilities
9,575
9,869
Total Shareholders' Equity
6,852
6,987
Total Liabilities and Shareholders'
Equity
$
16,427
$
16,856
TEXTRON INC.
MANUFACTURING GROUP
Condensed Schedule of Cash
Flows
(In millions)
(Unaudited)
Three Months Ended
Six Months Ended
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Cash Flows from Operating
Activities:
Income from continuing operations
$
254
$
253
$
441
$
438
Depreciation and amortization
90
101
178
193
Deferred income taxes and income taxes
receivable/payable
(41
)
(77
)
(22
)
(61
)
Pension, net
(56
)
(51
)
(112
)
(102
)
Changes in assets and liabilities:
Accounts receivable, net
44
(28
)
10
(97
)
Inventories
(117
)
(173
)
(467
)
(553
)
Accounts payable
(14
)
(54
)
107
207
Other, net
223
343
218
442
Net cash from operating
activities
383
314
353
467
Cash Flows from Investing
Activities:
Capital expenditures
(74
)
(83
)
(140
)
(145
)
Net cash used in business acquisitions
(13
)
—
(13
)
—
Net proceeds from corporate-owned life
insurance policies
23
18
26
38
Proceeds from sale of property, plant and
equipment
—
—
3
—
Net cash from investing
activities
(64
)
(65
)
(124
)
(107
)
Cash Flows from Financing
Activities:
Principal payments on long-term debt and
nonrecourse debt
(7
)
(1
)
(359
)
(3
)
Purchases of Textron common stock
(358
)
(273
)
(675
)
(650
)
Dividends paid
(4
)
(4
)
(8
)
(8
)
Other financing activities, net
10
4
48
26
Net cash from financing
activities
(359
)
(274
)
(994
)
(635
)
Total cash flows from continuing
operations
(40
)
(25
)
(765
)
(275
)
Total cash flows from discontinued
operations
(1
)
(1
)
(1
)
(1
)
Effect of exchange rate changes on cash
and equivalents
(2
)
2
(10
)
8
Net change in cash and
equivalents
(43
)
(24
)
(776
)
(268
)
Cash and equivalents at beginning of
period
1,388
1,719
2,121
1,963
Cash and equivalents at end of
period
$
1,345
$
1,695
$
1,345
$
1,695
Manufacturing cash flow GAAP to
Non-GAAP reconciliation:
Three Months Ended
Six Months Ended
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Net cash from operating activities -
GAAP
$
383
$
314
$
353
$
467
Less: Capital expenditures
(74
)
(83
)
(140
)
(145
)
Add: Total pension contributions
11
11
23
24
Proceeds from sale of property, plant and
equipment
—
—
3
—
Manufacturing cash flow before pension
contributions - Non-GAAP (a)
$
320
$
242
$
239
$
346
(a)
Manufacturing cash flow before pension
contributions is a non-GAAP financial measure as defined in
"Non-GAAP Financial Measures and Outlook" attached to this
release.
TEXTRON INC.
Condensed Consolidated
Schedule of Cash Flows
(In millions)
(Unaudited)
Three Months Ended
Six Months Ended
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Cash Flows from Operating
Activities:
Income from continuing operations
$
260
$
263
$
461
$
454
Depreciation and amortization
90
101
178
193
Deferred income taxes and income taxes
receivable/payable
(47
)
(81
)
(24
)
(63
)
Pension, net
(56
)
(51
)
(112
)
(102
)
Changes in assets and liabilities:
Accounts receivable, net
44
(28
)
10
(97
)
Inventories
(117
)
(173
)
(467
)
(553
)
Accounts payable
(14
)
(54
)
107
207
Captive finance receivables, net
(15
)
(21
)
7
(15
)
Other, net
223
341
201
436
Net cash from operating
activities
368
297
361
460
Cash Flows from Investing
Activities:
Capital expenditures
(74
)
(83
)
(140
)
(145
)
Net cash used in business acquisitions
(13
)
—
(13
)
—
Net proceeds from corporate-owned life
insurance policies
23
18
26
38
Proceeds from sale of property, plant and
equipment
—
—
3
—
Finance receivables repaid
23
7
31
19
Finance receivables originated
(7
)
—
(18
)
—
Other investing activities, net
—
1
—
2
Net cash from investing
activities
(48
)
(57
)
(111
)
(86
)
Cash Flows from Financing
Activities:
Principal payments on long-term debt and
nonrecourse debt
(9
)
(17
)
(374
)
(34
)
Purchases of Textron common stock
(358
)
(273
)
(675
)
(650
)
Dividends paid
(4
)
(4
)
(8
)
(8
)
Other financing activities, net
(1
)
4
48
26
Net cash from financing
activities
(372
)
(290
)
(1,009
)
(666
)
Total cash flows from continuing
operations
(52
)
(50
)
(759
)
(292
)
Total cash flows from discontinued
operations
(1
)
(1
)
(1
)
(1
)
Effect of exchange rate changes on cash
and equivalents
(2
)
2
(10
)
8
Net change in cash and
equivalents
(55
)
(49
)
(770
)
(285
)
Cash and equivalents at beginning of
period
1,466
1,799
2,181
2,035
Cash and equivalents at end of
period
$
1,411
$
1,750
$
1,411
$
1,750
TEXTRON INC. Non-GAAP Financial
Measures and Outlook (Dollars in millions, except per share
amounts)
We supplement the reporting of our financial information
determined under U.S. generally accepted accounting principles
(GAAP) with certain non-GAAP financial measures. These non-GAAP
financial measures exclude certain significant items that may not
be indicative of, or are unrelated to, results from our ongoing
business operations. We believe that these non-GAAP measures may be
useful for period-over-period comparisons of underlying business
trends and our ongoing business performance, however, they should
be used in conjunction with GAAP measures. Our non-GAAP measures
should not be considered in isolation or as a substitute for the
related GAAP measures, and other companies may define similarly
named measures differently. We encourage investors to review our
financial statements and publicly filed reports in their entirety
and not to rely on any single financial measure. We utilize the
following definitions for the non-GAAP financial measures included
in this release and have provided a reconciliation of the GAAP to
non-GAAP amounts for each measure:
Segment Profit Segment
profit is an important measure used by our chief operating decision
maker for evaluating performance and for decision-making purposes.
Segment profit for the manufacturing segments excludes the
non-service components of pension and postretirement income, net;
LIFO inventory provision; intangible asset amortization; interest
expense, net for Manufacturing group; certain corporate expenses;
gains/losses on major business dispositions; and special charges.
The measurement for the Finance segment includes interest income
and expense along with intercompany interest income and
expense.
Adjusted Income from Continuing
Operations and Adjusted Diluted Earnings Per Share
Adjusted income from continuing operations and adjusted diluted
earnings per share exclude LIFO inventory provision, net of tax;
intangible asset amortization, net of tax; special charges, net of
tax; and gains/losses on major business dispositions, net of tax.
LIFO inventory provision is excluded to improve comparability with
other companies in our industry who have not elected to use the
LIFO inventory costing method. Intangible asset amortization is
excluded to improve comparability as the impact of such
amortization can vary substantially from company to company
depending upon the nature and extent of acquisitions and exclusion
of this expense is consistent with the presentation of non-GAAP
measures provided by other companies within our industry.
Management believes that it is important for investors to
understand that these intangible assets were recorded as part of
purchase accounting and contribute to revenue generation. We
consider items recorded in special charges, such as enterprise-wide
restructuring, certain asset impairment charges, and
acquisition-related restructuring, integration and transaction
costs, to be of a non-recurring nature that is not indicative of
ongoing operations.
Three Months Ended
Six Months Ended
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Income from continuing operations -
GAAP
$
260
$
263
$
461
$
454
Add: LIFO inventory provision, net of
tax
20
26
35
45
Intangible asset amortization, net of
tax
7
7
13
15
Special charges, net of tax
9
—
20
—
Adjusted income from continuing
operations - Non-GAAP
$
296
$
296
$
529
$
514
Diluted Earnings Per Share:
Income from continuing operations -
GAAP
$
1.35
$
1.30
$
2.38
$
2.22
Add: LIFO inventory provision, net of
tax
0.10
0.13
0.18
0.22
Intangible asset amortization, net of
tax
0.04
0.03
0.07
0.07
Special charges, net of tax
0.05
—
0.11
—
Adjusted income from continuing
operations - Non-GAAP
$
1.54
$
1.46
$
2.74
$
2.51
2024 Outlook
Diluted EPS
Income from continuing operations -
GAAP
$
1,040
$
1,078
$
5.44
$
5.66
Add: LIFO inventory provision, net of
tax
85
0.44
Intangible asset amortization, net of
tax
27
0.14
Special charges, net of tax
33
—
30
0.18
—
0.16
Adjusted income from continuing
operations - Non-GAAP
$
1,185
—
$
1,220
$
6.20
—
$
6.40
TEXTRON INC. Non-GAAP Financial
Measures and Outlook (Continued) (Dollars in millions, except
per share amounts)
Manufacturing Cash Flow Before Pension
Contributions Manufacturing cash flow before pension
contributions adjusts net cash from operating activities (GAAP) for
the following:
- Deducts capital expenditures and includes proceeds from
insurance recoveries and the sale of property, plant and equipment
to arrive at the net capital investment required to support ongoing
manufacturing operations;
- Excludes dividends received from Textron Financial Corporation
(TFC) and capital contributions to TFC provided under the Support
Agreement and debt agreements as these cash flows are not
representative of manufacturing operations;
- Adds back pension contributions as we consider our pension
obligations to be debt-like liabilities. Additionally, these
contributions can fluctuate significantly from period to period and
we believe that they are not representative of cash used by our
manufacturing operations during the period.
While we believe this measure provides a focus on cash generated
from manufacturing operations, before pension contributions, and
may be used as an additional relevant measure of liquidity, it does
not necessarily provide the amount available for discretionary
expenditures since we have certain non-discretionary obligations
that are not deducted from the measure.
Three Months Ended
Six Months Ended
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Net cash from operating activities -
GAAP
$
383
$
314
$
353
$
467
Less: Capital expenditures
(74
)
(83
)
(140
)
(145
)
Add: Total pension contributions
11
11
23
24
Proceeds from sale of property, plant and
equipment
—
—
3
—
Manufacturing cash flow before pension
contributions - Non-GAAP
$
320
$
242
$
239
$
346
2024 Outlook
Net cash from operating activities -
GAAP
$
1,272
—
$
1,372
Less: Capital expenditures
(425)
Add: Total pension contributions
50
Proceeds from sale of property, plant and
equipment
3
Manufacturing cash flow before pension
contributions - Non-GAAP
$
900
—
$
1,000
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240718727647/en/
Investor Contacts: David Rosenberg – 401-457-2288 Kyle
Williams – 401-457-2288 Media Contact: Mike Maynard –
401-457-2362
Textron (NYSE:TXT)
過去 株価チャート
から 6 2024 まで 7 2024
Textron (NYSE:TXT)
過去 株価チャート
から 7 2023 まで 7 2024
