Textron reports higher profit as Bell Helicopter results improve

Textron, the Rhode Island-based parent of Bell Helicopter, recorded a higher profit in the first quarter including improved results at the Fort Worth-based helicopter maker.

Net income totaled $150 million, or 55 cents a share, up from $128 million, or 46 cents, a year ago. Revenue was $4.2 billion, up 4.2 percent, with growth led by its aviation unit, which makes Cessna and Beechcraft business jets, and its industrial segment.

At Bell, profit increased about 8 percent to $82 million, although sales were essentially flat, up just $1 million to $814 million.

Textron said Bell delivered 6 V-22 Ospreys in the quarter, equal to last year’s first quarter, 10 H-1s compared with 4 last year and 30 commercial helicopters, down from 35.

On a conference call Wednesday with analysts, Textron Chairman and CEO Scott Donnelly said that the market for commercial helicopters “is still challenging for sure,” but reported steady progress on flight testing for Bell’s two newest products, the 525 Relentless and the smaller 505 Jet Ranger.

Donnelly said Bell signed a letter of intent for 10 525s with a Chinese investment firm at last month’s Heli-Expo trade conference, and separately received an order for 30 505s from an Indonesian operator. He said the first deliveries of the 505 are expected later this year.

On the military side, Donnelly said Bell received an order from the Department of Defense for 61 additional H-1 helicopters, including nine for Pakistan, that will ensure production will continue through 2019. And the company is exploring options for a new multiyear contract for the V-22.

Bell has been cutting back in recent years as V-22 production slowed and the commercial helicopter market was challenged by the decline in oil prices and drilling. A year ago, the company announced 1,100 job cuts, including as many as 650 in Fort Worth.

This story was originally published April 20, 2016 at 3:50 PM with the headline "Textron reports higher profit as Bell Helicopter results improve."