Textron anticipates robust profits in 2024 due to a significant US Army contract and increased aircraft deliveries.

On January 24, Reuters reported that Textron, the manufacturer of Cessna business jets, projected an increase in private plane deliveries for the current year. The company also forecasted a 2024 profit surpassing Wall Street estimates, driven by a significant U.S. Army contract, where its Bell unit is replacing Black Hawk helicopters. In response to this news, Textron shares experienced a surge of 6.54%, reaching approximately $84.4 in early trading and marking a new record high.

Despite the optimism in the private jet market due to sustained customer interest post-COVID-19, Textron acknowledged potential challenges. The slowing global growth in 2024 and the increased availability of preowned planes may impact demand. Textron’s aviation unit faced difficulties in 2023, delivering 168 business jets, a decrease from the previous year’s 178, attributed to labor shortages and supply chain disruptions. However, Textron CEO Scott Donnelly expressed expectations for improved production lines and reduced hiring challenges in 2024.

Donnelly highlighted the U.S. Army contract awarded in December 2022 for next-generation helicopters, expecting revenue close to $900 million in 2024. Despite initial assumptions of a likely decline in margins, brokerage J.P. Morgan noted that the Bell unit’s margin has held up relatively well. Additionally, in the current month, the Bell unit secured a C$2.28 billion helicopter service and support contract from Canada.

For the fourth quarter, Textron reported adjusted earnings of $1.60 per share, exceeding the estimated $1.54 per share. However, the company’s total quarterly revenue of $3.89 billion fell short of the anticipated $3.95 billion.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Previous Post

Cooperative in the Poultry Industry Boosting Economic Activity in Central Virginia.

Next Post

Finesse Unleashed: Ramin Ahmari’s AI-Powered Fashion Revolution

Related Posts

Hailey Bieber’s Evolution: From Social Media Sensation to Skincare Mogul

In the dynamic realm of social media, Hailey Bieber has solidified her status as an influential figure, amassing a staggering 60 million followers across Instagram and TikTok. Recognized not only as the wife of global pop sensation Justin Bieber but also as a prominent model and influencer, she has captivated audiences with her innate charisma and impeccable style. Bieber's foray into the world of fashion began at the tender age of 17 when she clinched a notable modeling deal with the esteemed retailer French Connection. Beyond strutting on runways, her influence extends to high-profile brands, with endorsement deals from the likes of Jimmy Choo, Levi's, and Saint Laurent.
Read More