Tuesday, July 28, 2009

Textron leaders are starting to sound more positive about the aviation industry. Although there were large losses in the second quarter, Textron says there are signs that perhaps a bottom has been made and there’s a corner to turn.

Textron chairman Lewis Campbell says there is still turbulence ahead for Cessna.

"We're not quite ready to call the bottom yet but based on that data we're hoping that a period of stability is just around the corner,” Campbell said.

Campbell says Cessna received on average only three new jet orders per month this year through May. In June, Cessna got seven new orders.

"We now have what we believe is a workforce and a production rate that we'll maintain through the balance of 2009, 2010 consistent with what we believe our deliveries will be,” said Scott Donnelly, Textron’s COO.

Campbell believes a recovery could start in 2011.

Textron lost $58 million in the second quarter and revenue dropped 29%. Despite those numbers, Textron’s stock soared 17.5% because of the positive comments about the future.