Textron’s profit rises on stronger pricing of business jets
April 27 (Reuters) – Textron Inc (TXT.N) beat estimates for first-quarter profit on Thursday, as higher sales of pricier business jets in Aviation segment helped offset the lower military helicopter revenues in Bell unit.
Shares of the Cessna business jet maker rose ~1% in premarket trading.
A stronger-than-expected demand for air travel has forced airlines to keep older jets in service for longer, leading to a rise in demand for spare parts and aftermarket service.
On adjusted basis, the company earned $1.05 per share in the first quarter, compared with analysts’ average estimate of $1 per share, according to Refinitiv data.
Revenue at Textron’s Aviation unit was $1.1 billion, up $109 million from last year, reflecting higher pricing of $58 million and higher volume of $51 million.
However, the segment’s jet deliveries fell to 35 from 39 during the same time due to continued supply chain snags.
In Bell unit, the company reported $621 million revenue, down $213 million from a year earlier.
While the demand for private flying has begun to flatten from the height of COVID-19, Textron’s Aviation segment still had a sizeable order backlog worth $6.5 billion at the quarter end.
The jet maker’s total revenue of $3.02 billion missed analysts’ average estimate of $3.11 billion.