Textron (TXT 19.29, +0.93) reported a steep drop in third quarter revenues compared to the prior year, but said that its results reflect "continued stabilization" in most of its commercial markets.
Textron reported third quarter earnings of $0.12 per share, excluding charges. The results may not be comparable to the First Call consensus that expected a loss of $0.03.
Revenues fell 26.6% year-over-year to $2.55 billion; the consensus expected $2.52 billion.
Textron recorded third quarter pretax special charges of $42 million associated with its restructuring program. Full-year restructuring charges are now expected to be approximately $240 million.
"Third quarter results reflect continued stabilization in most of our commercial markets," said outgoing CEO Lewis B. Campbell. "We have made good progress this year generating cash through the process of winding down TFC's non-captive business, as well as improving cost productivity in our manufacturing businesses."
The company issued guidance for fiscal 2009, saying it expects earnings to range from $0.33 to $0.63 per share. The projection may not be comparable to the consensus, which expects a loss of $0.06 per share. Textron projects fiscal 2009 revenue of $10.6 billion; the consensus expects $10.3 billion.
"The demand environment for our commercial products continues to show signs of stabilization, but we believe that market recovery likely will be slow and modest," said Scott Donnelly, who was named as the company's new CEO last month.
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