TXT - Textron reports mixed results for Q1 expects rebound at Bell

2023-04-27 09:29:43 ET

Textron’s ( NYSE: TXT ) profit declined in Q1 as its Bell helicopter business saw lower sales and was less profitable than in the prior year. The company said it expects Bell to increase revenue as it resumes work on a next-generation tilt-rotor aircraft for the U.S. Army.

The industrial conglomerate’s net income slipped 1% from a year earlier to $191 million, less than the consensus estimate of $195 million. EPS rose to $0.92 from $0.88.

EPS adjusted for one-time charges rose to $1.05 from $0.97, beating the consensus estimate of $0.99. Revenue rose to $3.02 billion from $3.0 billion, missing the consensus forecast of $3.11 billion.

The company's Textron Aviation business boosted sales to $1.15 billion from $1.04 billion. while its profit rose to $125 million from $110 million. Sales at the Bell unit fell to $621 million from $834 million and its profit dropped 34% to $60 million from $91 million a year earlier.

Textron management foresees improvements ahead for Bell. The Army last year awarded the company a potentially lucrative contract to build the Future Long-Range Assault Aircraft (FLRAA), as the replacement for the UH-60 Blackhawk helicopter made by Sikorsky is called. Lockheed Martin ( LMT ), which owns Sikorsky, protested the award to the U.S. General Accountability Office and was rejected.

"At Bell, we expect to see revenue growth through the remainder of the year following the resolution of the FLRAA contract protest earlier this month, which allowed us to restart work on the program," Scott C. Donnelly, chairman and CEO of Textron, said in a statement.

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