|Increases 2010 Managed Receivables Reduction Target to $2.4 Billion;
Confirms Year-End Capital Structure Targets
Maintains 2010 Earnings Outlook
PROVIDENCE, R.I., Sep 21, 2010 (BUSINESS WIRE) — Textron Inc. (NYSE: TXT) today reported that it is adjusting aircraft production schedules and reducing headcount at its Cessna business unit due to continued weakness in new aircraft orders.
“While we are seeing solid performance in most of our other businesses, we have not yet seen a discernable improvement in business jet order activity,” said Textron chairman and chief executive officer Scott C. Donnelly. “Therefore, we are taking further production and restructuring actions at Cessna.”
The company still expects 2010 earnings per share from continuing operations excluding special charges to be in the range of $0.55 to $0.65. Manufacturing free cash flow from continuing operations for the year is now expected to be approximately $400 million, compared to a previous target of $500 – $550 million, reflecting lower expected jet deliveries.
Higher finance receivable liquidations at Textron Financial should more than offset the lower expected cash from manufacturing operations, as the company now expects to reduce receivables by $2.4 billion this year, up from its previous target of $2.0 billion and its original target of $1.6 billion. During the third quarter, the company repaid the $665 million balance remaining on the Textron Inc. $1.25 billion bank line. The company continues to be on track to reduce net debt below $5.5 billion by the end of the year.
Textron plans to issue third quarter financial results on Wednesday, October 20, 2010 and will host a conference call at 8:00 a.m. (Eastern) to discuss results and the company’s outlook. The call will be available via webcast at www.textron.com or by direct dial at (800) 230-1085 in the U.S. or (612) 332-0226 outside of the U.S. (request the Textron Earnings Call).
In addition, the call will be recorded and available for playback beginning at 10:30 a.m. (Eastern) on Wednesday, October 20, 2010 by dialing (320) 365-3844; Access Code: 138125.
Textron Adjusts Business Jet Outlook