Textron Bizav Deliveries Jump 20 Percent in Q2

Textron Aviation’s revenues increased by 9 percent and profits nearly doubled in the second quarter as the strengthening business aviation market helped lead to a 20 percent jump in jet and turboprop deliveries in the quarter. The Wichita manufacturer delivered 95 Citations, King Airs, and Caravans in the second quarter, a 16-unit gain from the same period in 2017, Textron Inc., the parent company of Textron Aviation, reported today.

The turboprop sector was the major driver of that jump, with deliveries up 14 units to 47. This increase did not come as a surprise, said Textron chairman and CEO Scott Donnelly, adding that it came as international sales improved.

Donnelly was equally as bullish on the jet market. The company delivered two additional units, or 48 in the second quarter, and he said order activity remained strong throughout the period.

“We’re pleased with the order flow,” he said, adding the market dynamic “has stayed robust” for both jet and turboprop lines.

Backlog remained relatively flat at $1.6 billion, but Donnelly said that not only did orders keep pace with increased deliveries, they remained active as the group worked to continue to nose up pricing. Also, he noted order activity more than made up for the loss of deliveries from the discontinued and unprofitable Mustang line. That line produced five deliveries this time last year.

Improved pricing provided a $29 million benefit to the company in the second quarter (it was $9 million in the first), Donnelly said. But he also credited the mix of deliveries, as well as cost controls for driving an increase in margins. Textron Aviation pulled in $1.28 billion in revenues in the second quarter, compared with $1.17 billion a year earlier. Profits swelled from $54 million in the second quarter of 2017 to $104 million in the most recent quarter.

For the first half, Textron Aviation’s revenues have increased to $2.29 billion, up from the $2.14 billion in the first six months of 2017. Profits have climbed from $90 million a year ago to $176 million this year.

Donnelly was encouraged by growth the unit experienced in aftermarket business but cautioned that it may not be reflected as much in results because of an accounting change.