Wings Magazine

Cessna earnings fall in Q4

Jan. 24, 2013, Wichita, Kan. - Textron Inc., parent company of Cessna Aircraft Co., on Wednesday reported that profits, revenues, and deliveries at the Wichita-based aircraft manufacturer all fell in the fourth quarter.

January 24, 2013  By Carey Fredericks

Revenues at Cessna were down to $901 million, a decrease of $110 million year over year. Segment profit at Cessna was down $37 million to $23 million during the same period, which Textron says was primarily due to a $27.4 million arbitration settlement charge and lower jet volumes. Deliveries of Cessna’s Citation business jets fell from 67 to 53 year over year.

An arbitration panel last year awarded the $27.4 million to Canadian supplier Avcorp in a case stemming from a dispute over the company’s supplier agreement with Cessna.

For the full year, however, revenues at Cessna increased from $2.9 billion to $3.1 billion, while segment profits rose from $60 million to $82 million.

Overall revenues at Textron were at $3.4 billion in the fourth quarter, up 3.3 percent year over year. Earnings per share were up to $0.50, rebounding from a loss of $0.06 per share in the fourth quarter of 2011.


“Growth in the fourth quarter was the result of strong military and commercial demand at Bell and increased deliveries at Textron Systems, E-Z-GO and Jacobsen, partially offset by weakness in our automotive and business jet markets,” Textron CEO Scott C. Donnelly said in a news release.


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