Textron reports solid Q1 results for Bell and Cessna
19 Apr 2008
Bell Helicopter and Cessna Aircraft Co parent, Textron, has reported double-digit increases in Q1 profits and revenues, driven largely by its profit-producing subsidiary Cessna Aircraft Co. It reported a profit of $231 million,18.2 per cent higher than a year ago on revenues that increased 18.7 per cent to $3.52 billion.
Operating profit at Cessna, the world's leading manufacturer of small and mid-sized business jets, increased 33 per cent to $207 million, while revenues rose 29 per cent to $1.25 billion.
Cessna has delivered 95 business jets in the quarter, compared with 67 a year ago, and also received 235 new orders, adding nearly $2 billion to an order backlog that now stands at $14.5 billion.
Cessna intends to deliver more than 500 jets this year.
Fort Worth-based Bell Helicopter also reported solid results, with revenues at $574 million, $6 million less than a year ago, but profits more than doubling to $53 million.
At the end of first quarter, Bell's order backlog stood at $5.2 billion, which included a $1.2 billion order for V-22 Osprey tilt rotor aircraft, which will be supplied under a new five-year, 167-aircraft contract. The total order of $10.4 billion is split roughly evenly between Bell and Boeing.
Bell's order backlog is up 37 per cent, not including $1 billion worth of orders for the new 429 civilian helicopter model, which won't be taken into account until the Federal Aviation Administration certifies the aircraft as safe and ready for delivery.
Textron said it will invest hundreds of millions of dollars at Bell to boost the company's production capacity in order to meet demand for new commercial helicopters as well as towards new technology and aircraft development.
