April 17, 2013
Textron, parent company of Wichita's Cessna Aircraft, missed on its first quarter financial report. Textron puts the blame on Cessna with fewer business jet deliveries than expected.
Textron CEO Scott Donnelly said, ".demand in the business jet market was softer than expected." Donnelly said, "Based on current business jet market conditions, we are reducting our 2013 business jet delivery outlook and now expect that deliveries will be down the year compared to 2012. This reflects our expectation for lower deliveries in the light category, partially offset by growth in the midsize category. Accordingly, wer are adjusting production schedules and implementing other appropriate cost actions at Cessna."
Textron's news release says Cessna delivered 32 new jets in the quarter down from 38 units in last year's first quarter.
Revenues at Cessna increased $39 million, primarily the result of higher used aircraft sales.
Textron Inc. reports first quarter 2013 income from continuing operations of $.40 per share, compared to $.41 per share in the first quarter of 2012. Total revenues in the quarter were $2.86 billion, approximately flat with the first quarter of 2012.
Textron's stock fell more than 12% in morning trading.