Textron cuts 2013 guidance on weak jet deliveries

PROVIDENCE, R.I. (AP) -- Military and civilian aircraft maker Textron Inc. said Wednesday that first-quarter net income barely rose, and it expects its business jet deliveries to fall this year.

Textron said it will cut costs at its Cessna unit in response to lower-than-expected deliveries.

Textron shares dropped by about 12 percent in morning trading amid a broader market decline.

The company earned $119 million, or 41 cents per share, for the qua4rter that ended March 30. That was up from $118 million, or 40 cents per share, during the same period last year. Revenue was flat at $2.86 billion.

Analysts surveyed by FactSet expected 46 cents per share on revenue of $2.88 billion.

Cessna delivered 32 business jets during the quarter, down from 38 a year earlier. The segment, which makes business jets as well as small propeller-driven planes, lost $8 million during the quarter, after losing $6 million a year ago. Segment revenue rose 5.8 percent to $708 million because of used plane sales.

Profits in its Bell unit, which makes military and civilian helicopters and is the company's largest by revenue, fell 11 percent to $129 million. Revenue fell 4.5 percent to $949 million.

Textron expects to earn $1.90 to $2.10 per share for all of 2013. It previously predicted $2.10 to $2.30 per share. In January it forecast a "modest increase" in jet deliveries, but on Wednesday it said deliveries would fall as less demand for smaller jets offsets growth in deliveries of midsize planes.

"Accordingly, we are adjusting production schedules and implementing other appropriate cost actions at Cessna," the company said.

Textron fell $3.55 to $25.80. The stock's 52-week range is $21.97 to $31.30.