Textron Inc. has released the company's fourth quarter 2022 financial results and things are looking positive. Full year 2022 income from continuing operations was $4.01 per share up from $3.30 in 2021.
“2022 was a strong year at Textron with solid revenue growth, order flow and execution at Aviation, new program awards at Systems, higher revenues and operating profit at Industrial and the contract award for the U.S. Army's Future Long Range Assault Aircraft program at Bell,” said Textron Chairman and CEO Scott C. Donnelly.
Textron CEO Scott. Donnelly (Image by Textron)
In light of this rosy outlook, Textron is forecasting 2023 revenues of approximately $14 billion, up from $12.9 billion. Estimated net cash provided by operating activities of continuing operations of the manufacturing group will be between $1.3 billion and $1.4 billion and manufacturing cash flow before pension contributions, a non-GAAP measure, will be between $0.9 billion and $1.0 billion, with planned pension contributions of about $50 million.
"The 2023 outlook reflects higher revenues, increased profit and operating margin expansion with a continuation of our growth strategy of ongoing investments in new products and programs to drive increases in long-term shareholder value," Donnelly concluded.
At Textron Aviation specifically, revenues of $1.6 billion were up $223 million from the fourth quarter of 2021. This reflects a higher volume and mix of $154 million and higher pricing of $69 million. This increase came mainly from higher Citation jet and defense volume.
One of the recent defense bumps that will effect future quarters was a sizable contract with the U.S. Navy to replace the aged T-44C platform with the T-54A; which will be built on the King Air 260 platform. The contract has options that go up to $677.2 million.
In a massive contract win, Textron will replace the aged T-44C (pictured) with the T-54A (Photo: Lt. Michelle Tucker)
For deliveries, Textron was able to produce 52 jets in the quarter, up from 46 last year, and 47 commercial turboprops, up from 43 last year.
Segment profit was $169 million in the fourth quarter, up $32 million from a year ago, reflecting a favorable impact from pricing, net of inflation of $29 million and higher volume and mix as described above, partially offset by an unfavorable impact of $16 million from performance.
Performance includes unfavorable manufacturing performance, largely related to inefficiencies from supply chain disruptions and increased staffing associated with higher production, partially offset by lower selling and administrative costs.
Textron Aviation backlog at the end of the fourth quarter was $6.4 billion.
The company website is www.txtav.com.
(Banner photograph by Textron Aviation)