UPDATE 2-Textron meets Wall Street view, raises outlook

* EPS ex-items 8 cents/shr, meets estimates

* Revenue down 2.7 pct on weak business jet demand

* Raises full-year EPS view to 70 cents-75 cents
(Adds comparison with estimates)

BOSTON, Oct 20 (BestGrowthStock) – Textron Inc (TXT.N: ) reported
quarterly results on Wednesday that met analysts’ expectations
and raised its forecast for the rest of the year, saying the
restructuring of its finance arm is proceeding smoothly.

But large special charges related to the downsizing of its
finance business pushed the diversified U.S. manufacturer to
record a net loss in the quarter.

The world’s largest maker of business jets reported a net
loss of $48 million or 17 cents per share, compared with net
profit of $4 million, or 1 cent per share, a year earlier.

The net loss included 30 cents per share of special charges
related to the finance arm, which weighed on profits during the
financial crisis.

Factoring out one-time items, it recorded a profit of 8
cents per share, meeting analysts’ expectations, according to
Thomson Reuters I/B/E/S.

Revenue came to $2.48 billion, down 2.7 percent, driven by
a sharp decline in sales at small plane maker Cessna, which
overshadowed growth at its Bell helicopter and industrial
equipment arms.

Textron raised its full-year profit target, saying it
expects full-year earnings of 70 to 75 cents per share, up from
its prior target of 55 to 65 cents.

Demand for corporate jets fell sharply during the credit
crunch and recession, hit by a double-whammy effect in which
companies both looked for ways to cut their costs and shied
away from any outlays that could be seen as excessively
lavish.

Honeywell International Inc (HON.N: ), which supplies cockpit
electronics and other control systems for light planes, on
Sunday said it does not expect deliveries of business jets to
grow until 2012, a year later than it had previously forecast.
[ID:nN15234300]

Shares of Textron, which also makes EZ-Go golf carts, are
up about 13 percent so far this year, trailing the 14 percent
rise of the Standard & Poor’s capital goods industry index.
(.GSPIC: )

Textron’s rivals include the Gulfstream unit of General
Dynamics Corp (GD.N: ) and Canada’s Bombardier Inc (BBDb.TO: ) in
corporate jets, and United Technologies Corp (UTX.N: ) in
helicopters.
(Reporting by Scott Malone; Editing by Derek Caney and Gerald
E. McCormick)

UPDATE 2-Textron meets Wall Street view, raises outlook