Textron Reports Fourth Quarter 2023 Results; Announces 2024 Financial Outlook

TEXTRON INC.

Revenues by Segment and Reconciliation of Segment Profit to Net Income

(Dollars in millions, except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

December 30,
2023

December 31,
2022

 

December 30,
2023

December 31,
2022

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

MANUFACTURING:

 

 

 

 

 

 

 

 

 

 

 

 

 

Textron Aviation

 

$

1,524

 

 

 

$

1,582

 

 

 

 

$

5,373

 

 

 

$

5,073

 

 

Bell

 

 

1,071

 

 

 

 

816

 

 

 

 

 

3,147

 

 

 

 

3,091

 

 

Textron Systems

 

 

314

 

 

 

 

314

 

 

 

 

 

1,235

 

 

 

 

1,172

 

 

Industrial

 

 

961

 

 

 

 

907

 

 

 

 

 

3,841

 

 

 

 

3,465

 

 

Textron eAviation

 

 

10

 

 

 

 

6

 

 

 

 

 

32

 

 

 

 

16

 

 

 

 

 

3,880

 

 

 

 

3,625

 

 

 

 

 

13,628

 

 

 

 

12,817

 

 

FINANCE

 

 

12

 

 

 

 

11

 

 

 

 

 

55

 

 

 

 

52

 

 

Total revenues

 

$

3,892

 

 

 

$

3,636

 

 

 

 

$

13,683

 

 

 

$

12,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT PROFIT

 

 

 

 

 

 

 

 

 

 

 

 

 

MANUFACTURING:

 

 

 

 

 

 

 

 

 

 

 

 

 

Textron Aviation

 

$

193

 

 

 

$

170

 

 

 

 

$

649

 

 

 

$

560

 

 

Bell

 

 

118

 

 

 

 

63

 

 

 

 

 

320

 

 

 

 

282

 

 

Textron Systems

 

 

35

 

 

 

 

35

 

 

 

 

 

147

 

 

 

 

132

 

 

Industrial

 

 

57

 

 

 

 

43

 

 

 

 

 

228

 

 

 

 

155

 

 

Textron eAviation

 

 

(23

)

 

 

 

(10

)

 

 

 

 

(63

)

 

 

 

(24

)

 

 

 

 

380

 

 

 

 

301

 

 

 

 

 

1,281

 

 

 

 

1,105

 

 

FINANCE

 

 

4

 

 

 

 

5

 

 

 

 

 

46

 

 

 

 

31

 

 

Segment profit (a)

 

 

384

 

 

 

 

306

 

 

 

 

 

1,327

 

 

 

 

1,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses and other, net

 

 

(45

)

 

 

 

(50

)

 

 

 

 

(143

)

 

 

 

(143

)

 

Interest expense, net for Manufacturing group

 

 

(13

)

 

 

 

(17

)

 

 

 

 

(62

)

 

 

 

(94

)

 

Special charges (b)

 

 

(126

)

 

 

 

 

 

 

 

 

(126

)

 

 

 

 

 

LIFO inventory provision

 

 

(21

)

 

 

 

(29

)

 

 

 

 

(107

)

 

 

 

(71

)

 

Intangible asset amortization

 

 

(9

)

 

 

 

(13

)

 

 

 

 

(39

)

 

 

 

(52

)

 

Non-service components of pension and postretirement income, net

 

 

60

 

 

 

 

60

 

 

 

 

 

237

 

 

 

 

240

 

 

Income from continuing operations before income taxes

 

 

230

 

 

 

 

257

 

 

 

 

 

1,087

 

 

 

 

1,016

 

 

Income tax expense

 

 

(31

)

 

 

 

(31

)

 

 

 

 

(165

)

 

 

 

(154

)

 

Income from continuing operations

 

$

199

 

 

 

$

226

 

 

 

 

$

922

 

 

 

$

862

 

 

Discontinued operations, net of income taxes

 

 

(1

)

 

 

 

 

 

 

 

 

(1

)

 

 

 

(1

)

 

Net income

 

$

198

 

 

 

$

226

 

 

 

 

$

921

 

 

 

$

861

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share from continuing operations

 

$

1.01

 

 

 

$

1.07

 

 

 

 

$

4.57

 

 

 

$

4.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted average shares outstanding

 

 

197,584,000

 

 

 

 

210,488,000

 

 

 

 

 

201,774,000

 

 

 

 

214,973,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations and Diluted earnings per share (EPS) GAAP to Non-GAAP Reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 30,
2023

December 31,
2022

 

December 30,
2023

December 31,
2022

Income from continuing operations - GAAP

 

$

199

 

 

 

$

226

 

 

 

 

$

922

 

 

 

$

862

 

 

Add: Special charges, net of tax (b)

 

 

94

 

 

 

 

 

 

 

 

 

94

 

 

 

 

 

 

LIFO inventory provision, net of tax

 

 

16

 

 

 

 

22

 

 

 

 

 

81

 

 

 

 

54

 

 

Intangible asset amortization, net of tax

 

 

7

 

 

 

 

10

 

 

 

 

 

30

 

 

 

 

40

 

 

Adjusted income from continuing operations - Non-GAAP (a)

 

$

316

 

 

 

$

258

 

 

 

 

$

1,127

 

 

 

$

956

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations - GAAP

 

$

1.01

 

 

 

$

1.07

 

 

 

 

$

4.57

 

 

 

$

4.01

 

 

Add: Special charges, net of tax (b)

 

 

0.47

 

 

 

 

 

 

 

 

 

0.47

 

 

 

 

 

 

LIFO inventory provision, net of tax

 

 

0.08

 

 

 

 

0.11

 

 

 

 

 

0.40

 

 

 

 

0.25

 

 

Intangible asset amortization, net of tax

 

 

0.04

 

 

 

 

0.05

 

 

 

 

 

0.15

 

 

 

 

0.19

 

 

Adjusted income from continuing operations - Non-GAAP (a)

 

$

1.60

 

 

 

$

1.23

 

 

 

 

$

5.59

 

 

 

$

4.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)   

Segment profit, adjusted income from continuing operations and adjusted diluted earnings per share are non-GAAP financial measures as defined in "Non-GAAP Financial Measures and Outlook" attached to this release.

(b)   

In the fourth quarter of 2023, we initiated a restructuring plan to reduce operating expenses through headcount reductions at the Industrial, Bell and Textron Systems segments. In connection with this plan, we recorded special charges of $126 million ($94 million, net of tax) for the three and twelve months ended December 30, 2023. These charges included $39 million of severance and related costs and $87 million in asset impairment charges related to both fixed and intangible assets within the powersports product line at Textron Specialized Vehicles and fixed assets at Kautex.

 
 

Textron Inc.

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

 

 

 

 

 

 

December 30,
2023

December 31,
2022

Assets

 

 

 

 

Cash and equivalents

$

2,121

 

$

1,963

 

Accounts receivable, net

 

868

 

 

855

 

Inventories

 

3,914

 

 

3,550

 

Other current assets

 

857

 

 

1,033

 

Net property, plant and equipment

 

2,477

 

 

2,523

 

Goodwill

 

2,295

 

 

2,283

 

Other assets

 

3,663

 

 

3,422

 

Finance group assets

 

661

 

 

664

 

Total Assets

$

16,856

 

$

16,293

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

Current portion of long-term debt

$

357

 

$

7

 

Accounts payable

 

1,023

 

 

1,018

 

Other current liabilities

 

2,998

 

 

2,645

 

Other liabilities

 

1,904

 

 

1,879

 

Long-term debt

 

3,169

 

 

3,175

 

Finance group liabilities

 

418

 

 

456

 

Total Liabilities

 

9,869

 

 

9,180

 

 

 

 

 

 

Total Shareholders' Equity

 

6,987

 

 

7,113

 

Total Liabilities and Shareholders' Equity

$

16,856

 

$

16,293

 
     
     

TEXTRON INC.

MANUFACTURING GROUP

Condensed Schedule of Cash Flows

(In millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Twelve Months Ended

 

 

December 30,
2023

December 31,
2022

 

December 30,
2023

December 31,
2022

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

194

 

 

 

$

220

 

 

 

 

$

884

 

 

 

$

835

 

 

Depreciation and amortization

 

 

103

 

 

 

 

109

 

 

 

 

 

395

 

 

 

 

396

 

 

Deferred income taxes and income taxes receivable/payable

 

 

(106

)

 

 

 

(56

)

 

 

 

 

(183

)

 

 

 

(182

)

 

Pension, net

 

 

(50

)

 

 

 

(42

)

 

 

 

 

(202

)

 

 

 

(165

)

 

Asset impairments

 

 

87

 

 

 

 

2

 

 

 

 

 

88

 

 

 

2

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

36

 

 

 

 

(3

)

 

 

 

 

(9

)

 

 

 

(26

)

 

Inventories

 

 

300

 

 

 

 

298

 

 

 

 

 

(359

)

 

 

 

(55

)

 

Accounts payable

 

 

(200

)

 

 

 

119

 

 

 

 

 

2

 

 

 

 

235

 

 

Other, net

 

 

169

 

 

 

 

(131

)

 

 

 

 

654

 

 

 

 

421

 

 

Net cash from operating activities

 

 

533

 

 

 

 

516

 

 

 

 

 

1,270

 

 

 

 

1,461

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(178

)

 

 

 

(162

)

 

 

 

 

(402

)

 

 

 

(354

)

 

Net cash used in business acquisitions

 

 

 

 

 

 

(1

)

 

 

 

 

(1

)

 

 

 

(202

)

 

Net proceeds from corporate-owned life insurance policies

 

 

1

 

 

 

 

 

 

 

 

 

40

 

 

 

 

23

 

 

Proceeds from sale of property, plant and equipment

 

 

14

 

 

 

 

1

 

 

 

 

 

18

 

 

 

 

22

 

 

Net cash from investing activities

 

 

(163

)

 

 

 

(162

)

 

 

 

 

(345

)

 

 

 

(511

)

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase/(decrease) in short-term debt

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

(14

)

 

Net proceeds from long-term debt

 

 

347

 

 

 

 

 

 

 

 

 

348

 

 

 

 

 

 

Principal payments on long-term debt and nonrecourse debt

 

 

(2

)

 

 

 

(2

)

 

 

 

 

(7

)

 

 

 

(18

)

 

Purchases of Textron common stock

 

 

(283

)

 

 

 

(228

)

 

 

 

 

(1,168

)

 

 

 

(867

)

 

Dividends paid

 

 

(4

)

 

 

 

(4

)

 

 

 

 

(16

)

 

 

 

(17

)

 

Other financing activities, net

 

 

7

 

 

 

 

8

 

 

 

 

 

67

 

 

 

 

41

 

 

Net cash from financing activities

 

 

65

 

 

 

 

(225

)

 

 

 

 

(776

)

 

 

 

(875

)

 

Total cash flows from continuing operations

 

 

435

 

 

 

 

129

 

 

 

 

 

149

 

 

 

 

75

 

 

Total cash flows from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

(2

)

 

Effect of exchange rate changes on cash and equivalents

 

 

15

 

 

 

 

17

 

 

 

 

 

10

 

 

 

 

(32

)

 

Net change in cash and equivalents

 

 

450

 

 

 

 

146

 

 

 

 

 

158

 

 

 

 

41

 

 

Cash and equivalents at beginning of period

 

 

1,671

 

 

 

 

1,817

 

 

 

 

 

1,963

 

 

 

 

1,922

 

 

Cash and equivalents at end of period

 

$

2,121

 

 

 

$

1,963

 

 

 

 

$

2,121

 

 

 

$

1,963

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing Cash Flow GAAP to Non-GAAP Reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Twelve Months Ended

 

 

December 30,
2023

December 31,
2022

 

December 30,
2023

December 31,
2022

Net cash from operating activities - GAAP

 

$

533

 

 

 

$

516

 

 

 

 

$

1,270

 

 

 

$

1,461

 

 

Less: Capital expenditures

 

 

(178

)

 

 

 

(162

)

 

 

 

 

(402

)

 

 

 

(354

)

 

Plus: Total pension contribution

 

 

11

 

 

 

 

13

 

 

 

 

 

45

 

 

 

 

49

 

 

Proceeds from sale of property, plant and equipment

 

 

14

 

 

 

 

1

 

 

 

 

 

18

 

 

 

 

22

 

 

Manufacturing cash flow before pension contributions - Non-GAAP (a)

 

$

380

 

 

 

$

368

 

 

 

 

$

931

 

 

 

$

1,178

 

 

(a)   

Manufacturing cash flow before pension contributions is a non-GAAP financial measure as defined in "Non-GAAP Financial Measures and Outlook" attached to this release.

 
 

TEXTRON INC.

Condensed Consolidated Schedule of Cash Flows

(In millions)

(Unaudited)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

December 30,
2023

December 31,
2022

 

December 30,
2023

December 31,
2022

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

199

 

 

 

$

226

 

 

 

 

$

922

 

 

 

$

862

 

 

Depreciation and amortization

 

 

103

 

 

 

 

109

 

 

 

 

 

395

 

 

 

 

397

 

 

Deferred income taxes and income taxes receivable/payable

 

 

(112

)

 

 

 

(63

)

 

 

 

 

(188

)

 

 

 

(202

)

 

Pension, net

 

 

(50

)

 

 

 

(42

)

 

 

 

 

(202

)

 

 

 

(165

)

 

Asset impairments

 

 

87

 

 

 

 

2

 

 

 

 

 

88

 

 

 

 

2

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

36

 

 

 

 

(3

)

 

 

 

 

(9

)

 

 

 

(26

)

 

Inventories

 

 

300

 

 

 

 

298

 

 

 

 

 

(359

)

 

 

 

(55

)

 

Accounts payable

 

 

(200

)

 

 

 

119

 

 

 

 

 

2

 

 

 

 

235

 

 

Captive finance receivables, net

 

 

15

 

 

 

 

6

 

 

 

 

 

(17

)

 

 

 

35

 

 

Other, net

 

 

171

 

 

 

 

(125

)

 

 

 

 

635

 

 

 

 

407

 

 

Net cash from operating activities

 

 

549

 

 

 

 

527

 

 

 

 

 

1,267

 

 

 

 

1,490

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(178

)

 

 

 

(162

)

 

 

 

 

(402

)

 

 

 

(354

)

 

Net cash used in business acquisitions

 

 

 

 

 

 

(1

)

 

 

 

 

(1

)

 

 

 

(202

)

 

Net proceeds from corporate-owned life insurance policies

 

 

1

 

 

 

 

 

 

 

 

 

40

 

 

 

 

23

 

 

Proceeds from sale of property, plant and equipment

 

 

14

 

 

 

 

1

 

 

 

 

 

18

 

 

 

 

22

 

 

Finance receivables repaid

 

 

 

 

 

 

(1

)

 

 

 

 

26

 

 

 

 

20

 

 

Other investing activities, net

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

44

 

 

Net cash from investing activities

 

 

(163

)

 

 

 

(163

)

 

 

 

 

(317

)

 

 

 

(447

)

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase/(decrease) in short-term debt

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

(14

)

 

Net proceeds from long-term debt

 

 

347

 

 

 

 

 

 

 

 

 

348

 

 

 

 

 

 

Principal payments on long-term debt and nonrecourse debt

 

 

(3

)

 

 

 

(7

)

 

 

 

 

(44

)

 

 

 

(234

)

 

Purchases of Textron common stock

 

 

(283

)

 

 

 

(228

)

 

 

 

 

(1,168

)

 

 

 

(867

)

 

Dividends paid

 

 

(4

)

 

 

 

(4

)

 

 

 

 

(16

)

 

 

 

(17

)

 

Other financing activities, net

 

 

7

 

 

 

 

8

 

 

 

 

 

67

 

 

 

 

41

 

 

Net cash from financing activities

 

 

64

 

 

 

 

(230

)

 

 

 

 

(813

)

 

 

 

(1,091

)

 

Total cash flows from continuing operations

 

 

450

 

 

 

 

134

 

 

 

 

 

137

 

 

 

 

(48

)

 

Total cash flows from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

(2

)

 

Effect of exchange rate changes on cash and equivalents

 

 

15

 

 

 

 

17

 

 

 

 

 

10

 

 

 

 

(32

)

 

Net change in cash and equivalents

 

 

465

 

 

 

 

151

 

 

 

 

 

146

 

 

 

 

(82

)

 

Cash and equivalents at beginning of period

 

 

1,716

 

 

 

 

1,884

 

 

 

 

 

2,035

 

 

 

 

2,117

 

 

Cash and equivalents at end of period

 

$

2,181

 

 

 

$

2,035

 

 

 

 

$

2,181

 

 

 

$

2,035

 

 

 
 

TEXTRON INC.

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Manufacturing Test Engineer for Google at Prague, Czechia, Czech Republic
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3DEXPERIENCE World 2025 at George R. Brown Convention Center Houston TX - Feb 23 - 26, 2025
TIMTOS 2025 at Nangang Exhibition Center Hall 1 & 2 (TaiNEX 1 & 2) TWTC Hall Taipei Taiwan - Mar 3 - 8, 2025
Additive Manufacturing Forum 2025 at Estrel Convention Cente Berlin Germany - Mar 17 - 18, 2025



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