Textron Inc. (TXT), a multi-industry company engaged in aircraft, defense, industrial and finance businesses, reported Friday that its second-quarter net income increased to $177 million or $0.65 per share from $167 million or $0.60 per share last year.
Income from continuing operations in the latest quarter was $178 million or $0.66 per share, 10 percent higher than last year.
On average, 12 analysts polled by Thomson Reuters expected earnings of $0.64 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues in the quarter were $3.51 billion, up 8.1 percent from $3.25 billion in the second quarter of 2015. Analysts were looking for revenues of $3.36 billion.
The company noted that revenues were up at Systems, Industrial and Textron Aviation despite a challenging global environment.
Textron segment profit in the quarter was $328 million, up $22 million from the second quarter of 2015.
Looking ahead, the company said its third-quarter results will include an income tax benefit, including reversal of accrued interest, of approximately $315 million, of which approximately $200 million, or $0.74 per share, is attributable to continuing operations. This is related to the approval on July 11 by the U.S. Internal Revenue Service Office of Appeals of a final settlement for the company's 1998 to 2008 tax years.
Further, Textron reiterated its 2016 earnings per share from continuing operations guidance of $2.60 to $2.80, not including the estimated impact related to the tax settlement. Analysts expect earnings of $2.72 per share for the year.
The company also confirmed its 2016 manufacturing cash flow before pension contributions guidance of $600 - $700 million.
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