-
EPS of
$1.18 ; adjusted EPS of$1.40 , down from$1.49 in the prior year -
Net cash from operating activities of
$208 million in the third quarter of 2024 -
$215 million returned to shareholders through share repurchases in the third quarter -
Textron Aviation
"In the third quarter,
"In the quarter, Bell achieved a key milestone on the FLRAA program with the
Cash Flow
Net cash provided by operating activities of the manufacturing group for the third quarter was
In the quarter, Textron returned
Outlook
On
Textron now expects 2024 adjusted earnings per share from continuing operations to be in a range of
Third Quarter Segment Results
Delayed aircraft deliveries along with unfavorable performance from manufacturing inefficiencies associated with the labor disruption resulting from the IAM strike lowered
Textron Aviation’s revenues were
Segment profit was
Bell
Bell revenues were
Bell delivered 44 commercial helicopters in the quarter, up from 23 in last year's third quarter.
Segment profit of
Bell backlog at the end of the third quarter was
Revenues at
Segment profit of
Textron Systems’ backlog at the end of the third quarter was
Industrial
Industrial revenues were
Segment profit of
Textron eAviation
Textron eAviation segment revenues were
Finance
Finance segment revenues were
Conference Call Information
Textron will host its conference call today,
In addition, the call will be recorded and available for playback beginning at
A package containing key data that will be covered on today’s call can be found in the Investor Relations section of the company’s website at www.textron.com.
About
Forward-looking Information
Certain statements in this release and other oral and written statements made by us from time to time are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which may describe strategies, goals, outlook or other non-historical matters, or project revenues, income, returns or other financial measures, often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “guidance,” “project,” “target,” “potential,” “will,” “should,” “could,” “likely” or “may” and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In addition to those factors described in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q under “Risk Factors”, among the factors that could cause actual results to differ materially from past and projected future results are the following: Interruptions in the
Revenues by Segment and Reconciliation of Segment Profit to Net Income (Dollars in millions, except per share amounts) (Unaudited) |
|||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||
|
2024 |
2 023 |
|
2 024 |
2 023 |
||||||||||||||||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MANUFACTURING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
1,339 |
|
|
|
$ |
1,338 |
|
|
|
|
$ |
4,002 |
|
|
|
$ |
3,849 |
|
|
Bell |
|
|
929 |
|
|
|
|
754 |
|
|
|
|
|
2,450 |
|
|
|
|
2,076 |
|
|
|
|
|
301 |
|
|
|
|
309 |
|
|
|
|
|
930 |
|
|
|
|
921 |
|
|
Industrial |
|
|
840 |
|
|
|
|
922 |
|
|
|
|
|
2,646 |
|
|
|
|
2,880 |
|
|
Textron eAviation |
|
|
6 |
|
|
|
|
7 |
|
|
|
|
|
22 |
|
|
|
|
22 |
|
|
|
|
|
3,415 |
|
|
|
|
3,330 |
|
|
|
|
|
10,050 |
|
|
|
|
9,748 |
|
|
FINANCE |
|
|
12 |
|
|
|
|
13 |
|
|
|
|
|
39 |
|
|
|
|
43 |
|
|
Total revenues |
|
$ |
3,427 |
|
|
|
$ |
3,343 |
|
|
|
|
$ |
10,089 |
|
|
|
$ |
9,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
SEGMENT PROFIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MANUFACTURING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
128 |
|
|
|
$ |
160 |
|
|
|
|
$ |
466 |
|
|
|
$ |
456 |
|
|
Bell |
|
|
98 |
|
|
|
|
77 |
|
|
|
|
|
260 |
|
|
|
|
202 |
|
|
|
|
|
39 |
|
|
|
|
41 |
|
|
|
|
|
112 |
|
|
|
|
112 |
|
|
Industrial |
|
|
32 |
|
|
|
|
51 |
|
|
|
|
|
103 |
|
|
|
|
171 |
|
|
Textron eAviation |
|
|
(18 |
) |
|
|
|
(19 |
) |
|
|
|
|
(54 |
) |
|
|
|
(40 |
) |
|
|
|
|
279 |
|
|
|
|
310 |
|
|
|
|
|
887 |
|
|
|
|
901 |
|
|
FINANCE |
|
|
5 |
|
|
|
|
22 |
|
|
|
|
|
30 |
|
|
|
|
42 |
|
|
Segment profit (a) |
|
|
284 |
|
|
|
|
332 |
|
|
|
|
|
917 |
|
|
|
|
943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate expenses and other, net |
|
|
(20 |
) |
|
|
|
(38 |
) |
|
|
|
|
(99 |
) |
|
|
|
(98 |
) |
|
Interest expense, net for Manufacturing group |
|
|
(22 |
) |
|
|
|
(16 |
) |
|
|
|
|
(57 |
) |
|
|
|
(49 |
) |
|
LIFO inventory provision |
|
|
(49 |
) |
|
|
|
(26 |
) |
|
|
|
|
(96 |
) |
|
|
|
(86 |
) |
|
Intangible asset amortization |
|
|
(9 |
) |
|
|
|
(10 |
) |
|
|
|
|
(26 |
) |
|
|
|
(30 |
) |
|
Special charges (b) |
|
|
2 |
|
|
|
|
— |
|
|
|
|
|
(25 |
) |
|
|
|
— |
|
|
Non-service components of pension and postretirement income, net |
|
|
66 |
|
|
|
|
59 |
|
|
|
|
|
198 |
|
|
|
|
177 |
|
|
Income from continuing operations before income taxes |
|
|
252 |
|
|
|
|
301 |
|
|
|
|
|
812 |
|
|
|
|
857 |
|
|
Income tax expense |
|
|
(29 |
) |
|
|
|
(32 |
) |
|
|
|
|
(128 |
) |
|
|
|
(134 |
) |
|
Income from continuing operations |
|
$ |
223 |
|
|
|
$ |
269 |
|
|
|
|
$ |
684 |
|
|
|
$ |
723 |
|
|
Discontinued operations, net of income taxes |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
|
— |
|
|
Net income |
|
$ |
223 |
|
|
|
$ |
269 |
|
|
|
|
$ |
683 |
|
|
|
$ |
723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations |
|
$ |
1.18 |
|
|
|
$ |
1.35 |
|
|
|
|
$ |
3.56 |
|
|
|
$ |
3.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted average shares outstanding |
|
|
188,944,000 |
|
|
|
|
199,992,000 |
|
|
|
|
|
191,886,000 |
|
|
|
|
203,170,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations and Diluted earnings per share (EPS) GAAP to Non-GAAP reconciliation: |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
2 024 |
2 023 |
|
2 024 |
2 023 |
||||||||||||||||
Income from continuing operations - GAAP |
|
$ |
223 |
|
|
|
$ |
269 |
|
|
|
|
$ |
684 |
|
|
|
$ |
723 |
|
|
Add: LIFO inventory provision, net of tax |
|
|
37 |
|
|
|
|
20 |
|
|
|
|
|
72 |
|
|
|
|
65 |
|
|
Intangible asset amortization, net of tax |
|
|
6 |
|
|
|
|
8 |
|
|
|
|
|
19 |
|
|
|
|
23 |
|
|
Special charges, net of tax |
|
|
(1 |
) |
|
|
|
— |
|
|
|
|
|
19 |
|
|
|
|
— |
|
|
Adjusted income from continuing operations - Non-GAAP (a) |
|
$ |
265 |
|
|
|
$ |
297 |
|
|
|
|
$ |
794 |
|
|
|
$ |
811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations - GAAP |
|
$ |
1.18 |
|
|
|
$ |
1.35 |
|
|
|
|
$ |
3.56 |
|
|
|
$ |
3.56 |
|
|
Add: LIFO inventory provision, net of tax |
|
|
0.20 |
|
|
|
|
0.10 |
|
|
|
|
|
0.38 |
|
|
|
|
0.32 |
|
|
Intangible asset amortization, net of tax |
|
|
0.03 |
|
|
|
|
0.04 |
|
|
|
|
|
0.10 |
|
|
|
|
0.11 |
|
|
Special charges, net of tax |
|
|
(0.01 |
) |
|
|
|
— |
|
|
|
|
|
0.10 |
|
|
|
|
— |
|
|
Adjusted income from continuing operations - Non-GAAP (a) |
|
$ |
1.40 |
|
|
|
$ |
1.49 |
|
|
|
|
$ |
4.14 |
|
|
|
$ |
3.99 |
|
|
(a) |
|
Segment profit, adjusted income from continuing operations and adjusted diluted earnings per share are non-GAAP financial measures as defined in "Non-GAAP Financial Measures and Outlook" attached to this release. |
(b) |
|
Special charges for the three and nine months ended |
Condensed Consolidated Balance Sheets (In millions) (Unaudited) |
||||||||||
|
|
|
||||||||
|
2024 |
2023 |
||||||||
Assets |
|
|
||||||||
Cash and equivalents |
$ |
1,289 |
$ |
2,121 |
||||||
Accounts receivable, net |
|
888 |
|
868 |
||||||
Inventories |
|
4,410 |
|
3,914 |
||||||
Other current assets |
|
750 |
|
857 |
||||||
Net property, plant and equipment |
|
2,484 |
|
2,477 |
||||||
|
|
2,307 |
|
2,295 |
||||||
Other assets |
|
3,656 |
|
3,663 |
||||||
Finance group assets |
|
668 |
|
661 |
||||||
Total Assets |
$ |
16,452 |
$ |
16,856 |
||||||
|
|
|
||||||||
|
|
|
||||||||
Liabilities and Shareholders' Equity |
|
|
||||||||
Current portion of long-term debt |
$ |
357 |
$ |
357 |
||||||
Accounts payable |
|
1,097 |
|
1,023 |
||||||
Other current liabilities |
|
2,905 |
|
2,998 |
||||||
Other liabilities |
|
1,855 |
|
1,904 |
||||||
Long-term debt |
|
2,884 |
|
3,169 |
||||||
Finance group liabilities |
|
403 |
|
418 |
||||||
Total Liabilities |
|
9,501 |
|
9,869 |
||||||
|
|
|
||||||||
Total Shareholders' Equity |
|
6,951 |
|
6,987 |
||||||
Total Liabilities and Shareholders' Equity |
$ |
16,452 |
$ |
16,856 |
||||||
MANUFACTURING GROUP Condensed Schedule of Cash Flows (In millions) (Unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||||||||||||||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations |
|
$ |
219 |
|
|
|
$ |
252 |
|
|
|
|
$ |
660 |
|
|
|
$ |
690 |
|
|
Depreciation and amortization |
|
|
101 |
|
|
|
|
99 |
|
|
|
|
|
279 |
|
|
|
|
292 |
|
|
Deferred income taxes and income taxes receivable/payable |
|
|
10 |
|
|
|
|
(16 |
) |
|
|
|
|
(12 |
) |
|
|
|
(77 |
) |
|
Pension, net |
|
|
(57 |
) |
|
|
|
(50 |
) |
|
|
|
|
(169 |
) |
|
|
|
(152 |
) |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
|
(31 |
) |
|
|
|
52 |
|
|
|
|
|
(21 |
) |
|
|
|
(45 |
) |
|
Inventories |
|
|
(4 |
) |
|
|
|
(106 |
) |
|
|
|
|
(471 |
) |
|
|
|
(659 |
) |
|
Accounts payable |
|
|
(30 |
) |
|
|
|
(5 |
) |
|
|
|
|
77 |
|
|
|
|
202 |
|
|
Other, net |
|
|
— |
|
|
|
|
44 |
|
|
|
|
|
218 |
|
|
|
|
486 |
|
|
Net cash from operating activities |
|
|
208 |
|
|
|
|
270 |
|
|
|
|
|
561 |
|
|
|
|
737 |
|
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
|
(71 |
) |
|
|
|
(79 |
) |
|
|
|
|
(211 |
) |
|
|
|
(224 |
) |
|
Net cash used in business acquisitions |
|
|
— |
|
|
|
|
(1 |
) |
|
|
|
|
(13 |
) |
|
|
|
(1 |
) |
|
Net proceeds from corporate-owned life insurance policies |
|
|
1 |
|
|
|
|
1 |
|
|
|
|
|
27 |
|
|
|
|
39 |
|
|
Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
4 |
|
|
|
|
|
3 |
|
|
|
|
4 |
|
|
Net cash from investing activities |
|
|
(70 |
) |
|
|
|
(75 |
) |
|
|
|
|
(194 |
) |
|
|
|
(182 |
) |
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Principal payments on long-term debt and nonrecourse debt |
|
|
(1 |
) |
|
|
|
(2 |
) |
|
|
|
|
(360 |
) |
|
|
|
(5 |
) |
|
Purchases of Textron common stock |
|
|
(215 |
) |
|
|
|
(235 |
) |
|
|
|
|
(890 |
) |
|
|
|
(885 |
) |
|
Dividends paid |
|
|
— |
|
|
|
|
(4 |
) |
|
|
|
|
(8 |
) |
|
|
|
(12 |
) |
|
Other financing activities, net |
|
|
11 |
|
|
|
|
35 |
|
|
|
|
|
59 |
|
|
|
|
61 |
|
|
Net cash from financing activities |
|
|
(205 |
) |
|
|
|
(206 |
) |
|
|
|
|
(1,199 |
) |
|
|
|
(841 |
) |
|
Total cash flows from continuing operations |
|
|
(67 |
) |
|
|
|
(11 |
) |
|
|
|
|
(832 |
) |
|
|
|
(286 |
) |
|
Total cash flows from discontinued operations |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
|
(1 |
) |
|
Effect of exchange rate changes on cash and equivalents |
|
|
11 |
|
|
|
|
(13 |
) |
|
|
|
|
1 |
|
|
|
|
(5 |
) |
|
Net change in cash and equivalents |
|
|
(56 |
) |
|
|
|
(24 |
) |
|
|
|
|
(832 |
) |
|
|
|
(292 |
) |
|
Cash and equivalents at beginning of period |
|
|
1,345 |
|
|
|
|
1,695 |
|
|
|
|
|
2,121 |
|
|
|
|
1,963 |
|
|
Cash and equivalents at end of period |
|
$ |
1,289 |
|
|
|
$ |
1,671 |
|
|
|
|
$ |
1,289 |
|
|
|
$ |
1,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Manufacturing cash flow GAAP to Non-GAAP reconciliation: |
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||||||||||||||
Net cash from operating activities - GAAP |
|
$ |
208 |
|
|
|
$ |
270 |
|
|
|
|
$ |
561 |
|
|
|
$ |
737 |
|
|
Less: Capital expenditures |
|
|
(71 |
) |
|
|
|
(79 |
) |
|
|
|
|
(211 |
) |
|
|
|
(224 |
) |
|
Add: Total pension contributions |
|
|
10 |
|
|
|
|
10 |
|
|
|
|
|
33 |
|
|
|
|
34 |
|
|
Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
4 |
|
|
|
|
|
3 |
|
|
|
|
4 |
|
|
Manufacturing cash flow before pension contributions - Non-GAAP (a) |
|
$ |
147 |
|
|
|
$ |
205 |
|
|
|
|
$ |
386 |
|
|
|
$ |
551 |
|
|
(a) |
Manufacturing cash flow before pension contributions is a non-GAAP financial measure as defined in "Non-GAAP Financial Measures and Outlook" attached to this release. |
Condensed Consolidated Schedule of Cash Flows (In millions) (Unaudited) |
|||||||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||||||||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||||||||||||||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations |
|
$ |
223 |
|
|
|
$ |
269 |
|
|
|
|
$ |
684 |
|
|
|
$ |
723 |
|
|
Depreciation and amortization |
|
|
101 |
|
|
|
|
99 |
|
|
|
|
|
279 |
|
|
|
|
292 |
|
|
Deferred income taxes and income taxes receivable/payable |
|
|
11 |
|
|
|
|
(13 |
) |
|
|
|
|
(13 |
) |
|
|
|
(76 |
) |
|
Pension, net |
|
|
(57 |
) |
|
|
|
(50 |
) |
|
|
|
|
(169 |
) |
|
|
|
(152 |
) |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
|
(31 |
) |
|
|
|
52 |
|
|
|
|
|
(21 |
) |
|
|
|
(45 |
) |
|
Inventories |
|
|
(4 |
) |
|
|
|
(106 |
) |
|
|
|
|
(471 |
) |
|
|
|
(659 |
) |
|
Accounts payable |
|
|
(30 |
) |
|
|
|
(5 |
) |
|
|
|
|
77 |
|
|
|
|
202 |
|
|
Captive finance receivables, net |
|
|
(3 |
) |
|
|
|
(17 |
) |
|
|
|
|
4 |
|
|
|
|
(32 |
) |
|
Other, net |
|
|
(2 |
) |
|
|
|
29 |
|
|
|
|
|
199 |
|
|
|
|
465 |
|
|
Net cash from operating activities |
|
|
208 |
|
|
|
|
258 |
|
|
|
|
|
569 |
|
|
|
|
718 |
|
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
|
(71 |
) |
|
|
|
(79 |
) |
|
|
|
|
(211 |
) |
|
|
|
(224 |
) |
|
Net cash used in business acquisitions |
|
|
— |
|
|
|
|
(1 |
) |
|
|
|
|
(13 |
) |
|
|
|
(1 |
) |
|
Net proceeds from corporate-owned life insurance policies |
|
|
1 |
|
|
|
|
1 |
|
|
|
|
|
27 |
|
|
|
|
39 |
|
|
Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
4 |
|
|
|
|
|
3 |
|
|
|
|
4 |
|
|
Finance receivables repaid |
|
|
(8 |
) |
|
|
|
7 |
|
|
|
|
|
23 |
|
|
|
|
26 |
|
|
Finance receivables originated |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(18 |
) |
|
|
|
— |
|
|
Other investing activities, net |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
2 |
|
|
Net cash from investing activities |
|
|
(78 |
) |
|
|
|
(68 |
) |
|
|
|
|
(189 |
) |
|
|
|
(154 |
) |
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Principal payments on long-term debt and nonrecourse debt |
|
|
(1 |
) |
|
|
|
(7 |
) |
|
|
|
|
(375 |
) |
|
|
|
(41 |
) |
|
Purchases of Textron common stock |
|
|
(215 |
) |
|
|
|
(235 |
) |
|
|
|
|
(890 |
) |
|
|
|
(885 |
) |
|
Dividends paid |
|
|
— |
|
|
|
|
(4 |
) |
|
|
|
|
(8 |
) |
|
|
|
(12 |
) |
|
Other financing activities, net |
|
|
11 |
|
|
|
|
35 |
|
|
|
|
|
59 |
|
|
|
|
61 |
|
|
Net cash from financing activities |
|
|
(205 |
) |
|
|
|
(211 |
) |
|
|
|
|
(1,214 |
) |
|
|
|
(877 |
) |
|
Total cash flows from continuing operations |
|
|
(75 |
) |
|
|
|
(21 |
) |
|
|
|
|
(834 |
) |
|
|
|
(313 |
) |
|
Total cash flows from discontinued operations |
|
|
— |
|
|
|
|
— |
|
|
|
|
|
(1 |
) |
|
|
|
(1 |
) |
|
Effect of exchange rate changes on cash and equivalents |
|
|
11 |
|
|
|
|
(13 |
) |
|
|
|
|
1 |
|
|
|
|
(5 |
) |
|
Net change in cash and equivalents |
|
|
(64 |
) |
|
|
|
(34 |
) |
|
|
|
|
(834 |
) |
|
|
|
(319 |
) |
|
Cash and equivalents at beginning of period |
|
|
1,411 |
|
|
|
|
1,750 |
|
|
|
|
|
2,181 |
|
|
|
|
2,035 |
|
|
Cash and equivalents at end of period |
|
$ |
1,347 |
|
|
|
$ |
1,716 |
|
|
|
|
$ |
1,347 |
|
|
|
$ |
1,716 |
|
|
Non-GAAP Financial Measures and Outlook
(Dollars in millions, except per share amounts)
We supplement the reporting of our financial information determined under
Segment Profit
Segment profit is an important measure used by our chief operating decision maker for evaluating performance and for decision-making purposes. Segment profit for the manufacturing segments excludes the non-service components of pension and postretirement income, net; LIFO inventory provision; intangible asset amortization; interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.
Adjusted Income from Continuing Operations and Adjusted Diluted Earnings Per Share
Adjusted income from continuing operations and adjusted diluted earnings per share exclude LIFO inventory provision, net of tax; intangible asset amortization, net of tax; special charges, net of tax; and gains/losses on major business dispositions, net of tax. LIFO inventory provision is excluded to improve comparability with other companies in our industry who have not elected to use the LIFO inventory costing method. Intangible asset amortization is excluded to improve comparability as the impact of such amortization can vary substantially from company to company depending upon the nature and extent of acquisitions and exclusion of this expense is consistent with the presentation of non-GAAP measures provided by other companies within our industry. Management believes that it is important for investors to understand that these intangible assets were recorded as part of purchase accounting and contribute to revenue generation. We consider items recorded in special charges, such as enterprise-wide restructuring, certain asset impairment charges, and acquisition-related restructuring, integration and transaction costs, to be of a non-recurring nature that is not indicative of ongoing operations.
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||
|
2024 |
2023 |
|
2 024 |
2 023 |
|||||||||||||
Income from continuing operations - GAAP |
|
$ |
223 |
|
|
|
$ |
269 |
|
|
|
$ |
684 |
|
|
$ |
723 |
|
Add: LIFO inventory provision, net of tax |
|
|
37 |
|
|
|
|
20 |
|
|
|
|
72 |
|
|
|
65 |
|
Intangible asset amortization, net of tax |
|
|
6 |
|
|
|
|
8 |
|
|
|
|
19 |
|
|
|
23 |
|
Special charges, net of tax |
|
|
(1 |
) |
|
|
|
— |
|
|
|
|
19 |
|
|
|
— |
|
Adjusted income from continuing operations - Non-GAAP |
|
$ |
265 |
|
|
|
$ |
297 |
|
|
|
$ |
794 |
|
|
$ |
811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Diluted Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income from continuing operations - GAAP |
|
$ |
1.18 |
|
|
|
$ |
1.35 |
|
|
|
$ |
3.56 |
|
|
$ |
3.56 |
|
Add: LIFO inventory provision, net of tax |
|
|
0.20 |
|
|
|
|
0.10 |
|
|
|
|
0.38 |
|
|
|
0.32 |
|
Intangible asset amortization, net of tax |
|
|
0.03 |
|
|
|
|
0.04 |
|
|
|
|
0.10 |
|
|
|
0.11 |
|
Special charges, net of tax |
|
|
(0.01 |
) |
|
|
|
— |
|
|
|
|
0.10 |
|
|
|
— |
|
Adjusted income from continuing operations - Non-GAAP |
|
$ |
1.40 |
|
|
|
$ |
1.49 |
|
|
|
$ |
4.14 |
|
|
$ |
3.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Outlook |
|||||||||||||
|
|
|
|
|
|
|
Diluted EPS |
|
||||||
Income from continuing operations - GAAP |
|
$ |
870 |
|
$ |
908 |
|
|
$ |
4.56 |
|
$ |
4.77 |
|
Add: LIFO inventory provision, net of tax |
|
|
100 |
|
|
|
|
0.53 |
|
|
||||
Intangible asset amortization, net of tax |
|
|
27 |
|
|
|
|
0.14 |
|
|
||||
Special charges, net of tax |
|
|
33 |
— |
|
30 |
|
|
|
0.17 |
— |
|
0.16 |
|
Adjusted income from continuing operations - Non-GAAP |
|
$ |
1,030 |
— |
$ |
1,065 |
|
|
$ |
5.40 |
— |
$ |
5.60 |
|
Non-GAAP Financial Measures and Outlook (Continued)
(Dollars in millions, except per share amounts)
Manufacturing Cash Flow Before Pension Contributions
Manufacturing cash flow before pension contributions adjusts net cash from operating activities (GAAP) for the following:
- Deducts capital expenditures and includes proceeds from insurance recoveries and the sale of property, plant and equipment to arrive at the net capital investment required to support ongoing manufacturing operations;
-
Excludes dividends received from
Textron Financial Corporation (TFC) and capital contributions to TFC provided under the Support Agreement and debt agreements as these cash flows are not representative of manufacturing operations; - Adds back pension contributions as we consider our pension obligations to be debt-like liabilities. Additionally, these contributions can fluctuate significantly from period to period and we believe that they are not representative of cash used by our manufacturing operations during the period.
While we believe this measure provides a focus on cash generated from manufacturing operations, before pension contributions, and may be used as an additional relevant measure of liquidity, it does not necessarily provide the amount available for discretionary expenditures since we have certain non-discretionary obligations that are not deducted from the measure.
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
|||||||||||||||||
Net cash from operating activities - GAAP |
|
$ |
208 |
|
|
|
$ |
270 |
|
|
|
$ |
561 |
|
|
|
$ |
737 |
|
|
|
Less: Capital expenditures |
|
|
(71 |
) |
|
|
|
(79 |
) |
|
|
|
(211 |
) |
|
|
|
(224 |
) |
|
|
Add: Total pension contributions |
|
|
10 |
|
|
|
|
10 |
|
|
|
|
33 |
|
|
|
|
34 |
|
|
|
Proceeds from sale of property, plant and equipment |
|
|
— |
|
|
|
|
4 |
|
|
|
|
3 |
|
|
|
|
4 |
|
|
|
Manufacturing cash flow before pension contributions - Non-GAAP |
|
$ |
147 |
|
|
|
$ |
205 |
|
|
|
$ |
386 |
|
|
|
$ |
551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
2024 Outlook |
||||||
Net cash from operating activities - GAAP |
|
$ |
997 |
— |
$ |
1,097 |
|
Less: Capital expenditures |
|
|
(400) |
|
|
||
Add: Total pension contributions |
|
|
50 |
|
|
||
Proceeds from sale of property, plant and equipment |
|
|
3 |
|
|
||
Manufacturing cash flow before pension contributions - Non-GAAP |
|
$ |
650 |
— |
$ |
750 |
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241024902499/en/
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Media Contact:
Source: Textron