In the third quarter, Textron’s Bell Helicopter unit posted a 13.1 percent operating margin on the delivery of 39 commercial helicopters, up from 25 in the same period last year. The deliveries include five 412s and the start of 407GXP deliveries to China’s Shaanxi Energy Group as part of a 100-ship order.
Largely on the strength of increased commercial deliveries, revenues at Bell were up $78 million in the quarter and segment profit increased by $9 million from a year ago. Backlog slid to $5 billion, down by $413 million from late June. Military deliveries were stagnant; Bell delivered eight H-1s, flat with last year, and five V-22s, down from six last year.
Textron chairman and CEO Scott Donnelly said the increased civil orders were broad-based, both from a sector and geographic perspective, “which is good frankly.” He added, “I think the overall market is still weaker than it has been in previous times, but it’s much better than it was couple of years ago.”
Donnelly said the gradual production ramp rate of Bell’s new 505 light single is not related to any difficulty in converting letters of intent to firm orders, but rather the natural process of obtaining foreign certifications. “The order book is certainly there, and the ramp is coming along,” he said.
Meanwhile, he said Bell remains on track to deliver the new 525 super-medium twin in 2019. “We are back in flight test, things are going well; that will ramp up here as we get more [test] aircraft back in the air through the balance of next year.”