UPDATE 3-Textron 2010 outlook disappoints, shares slide

* Q4 loss/share 23 cents vs. yr-earlier loss of 86 cents

* Revenue down 20.7 pct

* Sees 2010 EPS 30-50 cents ex-items, below Street view

* Shares down 6 pct
(Recasts first paragraph to include 2010 expectations,
business jet demand; updates stock action)

By Scott Malone

BOSTON, Jan 28 (BestGrowthStock) – Textron Inc (TXT.N: ) reported a
net loss for the fourth quarter and set a 2010 profit target
that fell well below Wall Street’s expectations, signaling that
demand for corporate jets would remain weak.

The world’s largest maker of business aircraft said on
Thursday that sales would fall again at Cessna and warned that
unit would likely post a first-quarter operating loss, with
shipments unlikely to pick up until later in the year.

The company said its finance arm — which it is scaling
back to focus on lending money to support the sale of Textron
products, which also include Bell helicopters, military
vehicles and EZ-Go golf carts — could report a $250 million
operating loss for the year.

The diversified U.S. manufacturer expects a 2010 profit of
30 cents to 50 cents per share, excluding 6 cents per share of
special charges for a Cessna restructuring, on about $10.8
billion in revenue.

Analysts, on average, had looked for profit of 82 cents per
share on $10.52 billion in revenue, according to Thomson
Reuters I/B/E/S.

Goldman Sachs analyst Noah Poponak called the forecast
“substantially lower than consensus and our expectations.”

Textron shares were down 6 percent to $19.75 in late
morning trading on the New York Stock Exchange.


The company said full-year Cessna revenue would drop about
10 percent to $3 billion, with most of that coming in the
latter part of the year.

Chief Executive Scott Donnelly said demand for corporate
jets — which became something of a symbol of corporate excess
during the recession — was leveling off after a sharp drop.

“We still have work to do at Cessna on our costs, but we
have seen the market stabilize,” Donnelly told investors on a
conference call.

The picture is brighter at Bell helicopters, where the
company looks for revenue growth of about 18 percent. It
forecast more modest sales growth at its Textron Systems
military vehicle arm and at the industrial unit.


Textron reported a fourth-quarter net loss of $63 million,
or 23 cents per share, narrower than its prior-year loss of
$209 million, or 86 cents per share.

Revenue fell 20.7 percent to $2.81 billion.

The Providence, Rhode Island-based company has scrambled to
cut costs over the past year, eliminating more than 20 percent
of staff and drawing down its entire line of credit to protect

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

The company’s shares are up 63 percent over the past year,
sharply outpacing the 30 percent rise of the Standard & Poor’s
500 index (.SPX: ).

(Reporting by Scott Malone; Editing by Derek Caney, Maureen
Bavdek, Tim Dobbyn)

UPDATE 3-Textron 2010 outlook disappoints, shares slide