(By Balachander) Textron Inc. (NYSE:TXT) posted lower-than-expected quarterly earnings and revenue amid weak business jet demand and lower volumes and the aviation company lifted its 2012 forecast that trailed market projections.
Earnings from continuing operations increased to $142 million or $0.48 per share for the third quarter from $136 million or $0.45 per share in the year-ago quarter. Wall Street analysts', on average, expected earnings of 52 cents a share.
Revenue rose about 7 percent to $3.00 billion, yet missed Wall Street projections of a growth of 8.6 percent.
"Third quarter results reflected strength in our helicopter and industrial units, favorable liquidation activity in our finance portfolio and good execution at Cessna in an environment of weak business jet demand, partially offset by lower overall volumes in our Textron Systems segment and charges associated with our new fee-for-service unmanned aerial systems programs," commented Textron CEO Scott Donnelly.
Revenue at the company's Cessna and Bell segments gained 0.9 percent and 20 percent respectively. Textron Systems segment revenue dropped 13.4 percent as a result of lower volumes, while Industrial segments revenue advanced 4.3 percent.
At Cessna, new Citation jet deliveries fell to 41 from 47 units in the year-ago quarter.
Looking ahead for the full year, the company now expects earnings per share from continuing operations in the range of $1.95 to $2.05 from $1.80 to $2.00 projected earlier. Analysts' expect earnings of $2.11 per share for the year ending December.
TXT shares, which have been trading between $16.86 and $29.18 over the past 52 weeks, closed Tuesday's regular trading at $26.46.