Textron’s sales in 3Q16
Textron’s (TXT) revenues in 3Q16 rose 2.2% to ~$3.3 billion, missing estimates by $150 million. Sales growth was driven by 2.1% inorganic growth from recently acquired companies and 0.2% organic growth. This growth was offset by 0.1% due to currency translations.
Revenues in the company’s finance unit, which provides customer financing for aircraft purchases under its Aviation and Bell segments, rose $3 million YoY (year-over-year). The rest of the increase came from manufacturing units.
Aviation and Industrial sales
Sales in the Textron Aviation and Industrial segments rose 3.4% and 7%, respectively, and were largely driven by acquisitive growth. These segments represented 36.8% and 27.2%, respectively, of the company’s total revenues in 3Q16.
In the Aviation segment, the company sold 41 new citation jets, as compared to 37 last year. The number of Beechcraft King Airs sold were flat YoY at 29.
Revenues from the Industrial segment rose 2.4% on an organic basis and were mainly driven by an uptick in its automotive (FSAVX) and specialized vehicle end markets.
Bell Helicopter and Textron Systems sales
Meanwhile, the oil industry (XOP) continues to impact civil helicopter manufacturers like Sikorsky (LMT), Airbus (EADSY), and Bell Helicopters. Bell’s revenues fell 2.9% to $734 million as it delivered 25 commercial helicopters, as compared to 45 last year.
Declines in this segment were offset by higher military sales. However, the company believes that the commercial helicopter demand has now stabilized and the market might be in early stages of a recovery. Revenues in the Textron Systems segment fell 1.7% to $413 million on account of lower weapon deliveries.