In This Article:
(Reuters) -Cessna business jet maker Textron beat first-quarter profit and revenue estimates on Thursday, driven by sustained strength in its Bell segment as well as robust demand for aftermarket parts and services in its Aviation segment.
Defence contractors such as Providence, Rhode Island-based Textron have been benefiting from the rise in munitions demand and funding for military programs amid the ongoing Russia-Ukraine war.
"In the quarter, we saw strong growth in both military and commercial product lines at Bell," said CEO Scott Donnelly.
The Bell unit, which makes helicopters and tiltrotors, posted a 35% rise in quarterly revenue from a year ago on higher commercial aircraft demand as well as increased sales to the U.S. Army's FLRAA program and military sustainment programs.
Textron's Aviation segment, which manufactures Cessna and Beechcraft aircraft, reported a 2% rise in first-quarter revenue as higher demand for aftermarket parts and services countered the impact of lower jet deliveries.
Aircraft manufacturers have been taking a hit to their margins due to delivery delays triggered by persistent supply chain issues.
Work stoppage from the IAM union strike last year also exacerbated production woes at Textron's aviation arm.
However, Donnelly said operations at the segment "continued to improve as the factory progressed toward pre-strike performance levels while ramping production."
The company's quarterly adjusted profit stood at $1.28 per share, compared with analysts' average estimate of $1.12 per share, according to LSEG compiled data.
Its total revenue rose 5.5% to $3.31 billion in the first quarter, compared with estimates of $3.25 billion.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shreya Biswas)