Textron Inc. (TXT) swung to a third-quarter loss on a charge related to an asset liquidation as revenue slid.
But the bottom line excluding charges topped expectations and the company raised its profit target for the year to 70 cents to 75 cents a share from 55 cents to 65 cents, in part on fourth-quarter international tax benefits.
The maker of small aircraft has suffered as companies see jets such as those made by its Cessna business as an easy place to cut costs--it announced plans to cut 8.3% of that unit's work force last month. Meanwhile, recent recovery in demand for Bell Helicopters and its industrial gear have helped the bottom line.
Textron posted a loss of $48 million, or 17 cents a share, compared with a year-earlier profit of $4 million, or a penny a share. Excluding impacts from an asset liquidation in the latest period and restructuring charges in both, earnings from continuing operations rose to 13 cents from 12 cents as revenue slid 2.7% to $2.48 billion.
Analysts polled by Thomson Reuters most recently forecast earnings of 8 cents on $2.62 billion in revenue.
Bell unseated Cessna as the largest segment by revenue, seeing that measure jump 31% as profit increased 35%. The latter's revenue plunged 35% as it swung to a loss. Backlog declined 8.6% at Cessna and 7.6% at Bell.
Shares closed Tuesday at $20.94 and were inactive premarket.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; firstname.lastname@example.org