Boston, MA 05/05/2014 (wallstreetpr) – Textron Inc. (NYSE:TXT) has reported its 1Q2014 earnings and missed the earning expectations.
Missed earnings
Lower volume has forced Textron to report lower earnings than the expected. For 1Q2014, the company has reported earnings of $0.31 per share. This is lower than the Zacks Consensus Estimate. The earning is also lower than last year’s earning the same period, which was $0.40.
The low one numbers are due to lower earnings by Bell and Textron Systems.
Acquisition of Beech Holdings, LLC
In March, 2014, Textron acquired Beech Holdings, LLC. After the acquisition, Cessna division of Textron formed a new reporting segment known as Textron Aviation that includes Beechcraft Corporation. With the acquisition of Beech Holdings, Textron will have access to the wide range of products from Beech. Textron Inc. (NYSE:TXT) will also be able to match its jet line-up with the King air product line of Beech. The acquisition will improve Textron’s expertise in research and development beside the enhancement of the existing service network.
Revenue
For the 1Q2014, the total revenue for Textron was $2.8 K million. It was, however, lower than the Zacks Consensus Estimate, which estimated the earnings to be $2.9 K million. It’s a 4.6% reduction from the estimated figure. The revenue was also marginally lower than the last years same quarter figures (it is 0.3% lower).
For the same time, manufacturing revenue increased 0.2% from the last year to reach $2.8K million. The revenue from the Finance division was lower 31% for the same quarter.
Into the future
Textron is a global company with diversifying network of businesses that reduce the possible business risk. It offers solutions for different segments including aircraft, industrial, defense and intelligence and finance fields. The company also introduced new products and invested in future growth. It acquired three different businesses. Its previous businesses have helped Textron Inc. (NYSE:TXT) in expanding the core offerings.
