Boston, MA 05/27/2014 (wallstreetpr) – Textron Inc. (NYSE:TXT), an $11 billion multi-industry player, announced it will not restart production of the Hawker aircraft models. Also, the company does not intend to use the Hawker name in any of its current or future jets, at least, in the foreseeable future.
The Hawker brand merged into Textron Aviation through Beechcraft Corp. According to Textron CEO Scott Ernest, Hawker technology may feature in some products inasmuch as the company does not intend to produce specific jets under Hawker brand.
The latest development regarding the fate of Hawker brand name came during a press briefing last week at the European Business Aviation Convention and Exhibition.
Although the company will halt the production of Hawker jets, it will continue to offer support to the fleet of Hawkers that are in service.
In addition to the update about the fate of Hawker, Textron Inc. (NYSE:TXT) also provide an update on its various other programs.
The Hawker jet models or the brand name found its way into the ranks of Textron Inc. (NYSE:TXT) following the acquisition of Beechcraft.
Added advantage
Textron Inc. (NYSE:TXT) expects the acquisition of Beechcraft to boost its Textron Aviation profits by $45 million this year. The Aviation segment posted a profit of $14 million in 1Q, compared with a loss of $8 million in the same quarter a year ago.
The gain in the aviation segment in the latest quarter was linked to the higher sales of jets and higher prices for plans in the quarter. The quarter saw total revenue in the aviation segment come in at $785 million, an improvement from $708 million in the same period a year earlier.
Totals revenue in Textron Inc. (NYSE:TXT) totaled $2.8 billion, almost flat from the same period a year earlier.
Charges amid big expectations
Although Textron Inc. (NYSE:TXT) expects long-term benefit in its aviation segment following the acquisition of Beechcraft, the company expects to suffer some costs relating to restructuring charges and acquisition costs. Restructuring charges are expected to hit $35 million in 2014 and acquisition cost has been put at $11 million.
