Revenues in the quarter were $4.1 billion, up 16.8 percent from $3.5 billion in the fourth quarter of 2013. Beechcraft, which was acquired in March 2014, contributed $556 million to the increase in revenues. Textron segment profit in the quarter was $398 million, up $91 million from the fourth quarter of 2013. Fourth quarter manufacturing cash flow before pension contributions was $449 million compared to $774 million during last year’s fourth quarter.
“Overall, we had a strong fourth quarter, with double digit revenue growth at Textron Aviation, Textron Systems and Industrial,” said Textron chairman and CEO Scott C. Donnelly. “Operationally, we achieved year-over-year margin improvement in the quarter at Textron Aviation, Bell and Industrial and solid cash generation across all of our businesses.”
Textron fourth quarter 2014 results included $13 million in restructuring costs related to the Beechcraft acquisition and Textron Aviation segment profit reflected an $8 million negative impact from fair value step-up adjustments to Beechcraft inventories sold during the quarter.
Full-year income from continuing operations was $2.15 per share, compared to $1.75 in 2013. Full-year 2014 results included $52 million in acquisition and restructuring costs related to the Beechcraft acquisition and Textron Aviation segment profit reflected a $63 million impact from fair value step-up adjustments to Beechcraft inventories sold during the year. Full-year 2014 manufacturing cash flow before pension contributions was $753 million compared to $256 million in 2013.
Outlook
Textron is forecasting 2015 revenues of approximately $14.4 billion and earnings per share from continuing operations in the range of $2.30 to $2.50. The company is estimating cash flow from continuing operations of the manufacturing group before pension contributions will be between $550 and $650 million with planned pension contributions of about $80 million.
Donnelly continued, “2014 was an important year as we made significant investments in both acquisitions and new product development to support the long-term growth of our businesses. Our outlook for 2015 reflects the early benefits of those actions and we intend to continue making investments to support ongoing growth and create long-term shareholder value.”
Fourth Quarter Segment Results
Textron Aviation
Revenues at Textron Aviation were up $597 million, primarily reflecting the impact of the Beechcraft acquisition, higher volumes and favorable mix. Textron Aviation delivered 55 new jets in the quarter, down from 62 jets in last year’s fourth quarter, and 41 King Air turboprops.
Textron Aviation recorded a segment profit of $130 million in the fourth quarter compared to $33 million a year ago in our Cessna segment. The increase reflects improved performance, including the impact of the Beechcraft acquisition, and favorable volume, mix and pricing.
Textron Aviation backlog at the end of the fourth quarter was $1.4 billion, approximately flat with the end of the third quarter.
Bell Helicopter
Bell revenues decreased $304 million, primarily the result of lower V-22 and commercial deliveries.
Bell delivered 7 V-22’s and 7 H-1’s in the quarter, compared to 13 V-22’s and 6 H-1’s in last year’s fourth quarter and 57 commercial helicopters, compared to 75 units last year.
Segment profit decreased $32 million primarily due to the lower volumes partially offset by favorable performance.
Bell backlog at the end of the fourth quarter was $5.5 billion, up $192 million from the end of the third quarter.
Textron Systems
Revenues at Textron Systems increased $212 million, primarily reflecting higher unmanned systems volumes and the impact of acquisitions partially offset by lower marine and land systems volumes.
Segment profit was up $10 million, reflecting the higher volumes.
Textron Systems’ backlog at the end of the fourth quarter was $2.8 billion, down $336 million from the end of the third quarter.
Industrial
Industrial revenues increased $89 million due to higher overall volumes and the impact of acquisitions partially offset by an unfavorable impact from foreign exchange. Segment profit increased $13 million reflecting favorable performance and the higher volumes.
Finance
Finance segment revenues decreased $4 million and segment profit increased $3 million.
