Textron Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a 3% increase in total revenues, which reached $3,427 million for Q3 2024, compared to $3,343 million in Q3 2023. For the nine months ended September 28, 2024, total revenues were $10,089 million, up from $9,791 million in the same period of the previous year. The growth was primarily driven by increased revenues in the Bell segment, which saw a 23% rise in Q3 2024, totaling $929 million, largely due to military volume related to the Future Long Range Assault Aircraft (FLRAA) program.
Manufacturing product revenues also increased to $2,955 million in Q3 2024 from $2,791 million in Q3 2023, while manufacturing service revenues decreased to $460 million from $539 million. Despite the revenue growth, the company experienced a decline in profitability, with net income for Q3 2024 at $223 million, down from $269 million in Q3 2023. This decline was attributed to increased costs, which rose to $3,175 million in Q3 2024 from $3,042 million in the prior year, driven by inflation and higher net volume.
The company’s effective tax rate for Q3 2024 was 11.5%, slightly higher than 10.6% in Q3 2023. The total costs of sales for Q3 2024 increased by 6% to $2,935 million, reflecting a combination of higher volume and inflationary pressures. Selling and administrative expenses decreased by 7% to $282 million in Q3 2024.
Textron's restructuring plan, initiated in 2023, has led to significant headcount reductions, with approximately 1,500 positions eliminated, representing about 4% of the global workforce. The company anticipates additional special charges of $15 million to $20 million in Q4 2024 related to these reductions. Cumulative special charges since the plan's inception have reached $151 million.
As of September 28, 2024, Textron's cash and equivalents stood at $1,289 million, down from $2,121 million at the end of 2023. The company reported a total backlog of $15,993 million, an increase from $13,899 million at the end of 2023, indicating strong future demand, particularly in the Bell segment, which saw its backlog rise significantly due to new orders.
Overall, while Textron experienced revenue growth in certain segments, profitability was impacted by rising costs and restructuring efforts, reflecting ongoing challenges in the current economic environment.
About TEXTRON INC
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