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.