Full year 2022 income from continuing operations was $4.01 per share up from $3.30 in 2021.
“2022 was a strong year at Textron with solid revenue growth, order flow and execution at Aviation, new program awards at Systems, higher revenues and operating profit at Industrial and the contract award for the U.S. Army's Future Long Range Assault Aircraft program at Bell,” said Textron Chairman and CEO Scott C. Donnelly.
Cash Flow
Net cash provided by operating activities of continuing operations of the manufacturing group for the full year was $1.5 billion. Manufacturing cash flow before pension contributions, a non-GAAP measure that is defined and reconciled to GAAP in an attachment to this release, totaled $1.2 billion for the full year, up $29 million from 2021.
In the quarter, Textron returned $228 million to shareholders through share repurchases. Full year 2022 share repurchases totaled $867 million.
Outlook
For 2023, Textron will begin reporting earnings per share on an adjusted basis to exclude LIFO inventory provision and intangible amortization expense, both non-cash items, effective with the first quarter 2023 financial results.
Textron is forecasting 2023 revenues of approximately $14.0 billion, up from $12.9 billion. Textron expects full-year 2023 GAAP earnings per share from continuing operations will be in the range of $4.40 to $4.60, or $5.00 to $5.20 on an adjusted basis as described above, which is reconciled to GAAP in an attachment to this release.
The company is estimating net cash provided by operating activities of continuing operations of the manufacturing group will be between $1.3 billion and $1.4 billion and manufacturing cash flow before pension contributions, a non-GAAP measure, will be between $0.9 billion and $1.0 billion, with planned pension contributions of about $50 million.
“The 2023 outlook reflects higher revenues, increased profit and operating margin expansion with a continuation of our growth strategy of ongoing investments in new products and programs to drive increases in long-term shareholder value,” Donnelly concluded.
Fourth Quarter Segment Results
Textron Aviation
Revenues at Textron Aviation of $1.6 billion were up $223 million from the fourth quarter of 2021, reflecting higher volume and mix of $154 million and higher pricing of $69 million. The increase in volume and mix was largely due to higher Citation jet and defense volume.
Textron Aviation delivered 52 jets in the quarter, up from 46 last year, and 47 commercial turboprops, up from 43 last year.
Segment profit was $169 million in the fourth quarter, up $32 million from a year ago, reflecting a favourable impact from pricing, net of inflation of $29 million and higher volume and mix as described above, partially offset by an unfavourable impact of $16 million from performance. Performance includes unfavourable manufacturing performance, largely related to inefficiencies from supply chain disruptions and increased staffing associated with higher production, partially offset by lower selling and administrative costs.
Textron Aviation's backlog at the end of the fourth quarter was $6.4 billion.
Bell
Bell revenues were $816 million, down $42 million from last year's fourth quarter, reflecting lower military revenues primarily in the H-1 program due to lower aircraft and spares volume, partially offset by higher commercial revenues.
Bell delivered 71 commercial helicopters in the quarter, up from 59 last year.
Segment profit of $71 million was down $17 million from a year ago, primarily reflecting lower volume and mix, partially offset by a favorable impact from performance.
Bell backlog at the end of the fourth quarter was $4.8 billion.
Textron Systems
Revenues at Textron Systems were $314 million, compared to $313 million in last year's fourth quarter.
Segment profit of $40 million was down $5 million from a year ago.
Textron Systems’ backlog at the end of the fourth quarter was $2.1 billion.
Industrial
Industrial revenues were $907 million, up $126 million from last year's fourth quarter, reflecting higher volume and mix of $95 million, and a $59 million favorable impact from pricing, largely in the Specialized Vehicles product line, partially offset by an unfavorable impact of $28 million from foreign exchange rate fluctuations.
Segment profit of $42 million was up $4 million from the fourth quarter of 2021, primarily due to higher volume and mix, partially offset by an unfavorable impact from performance.
Textron eAviation
Textron eAviation segment revenues were $6 million and segment loss was $10 million in the fourth quarter of 2022, which reflected the operating results of Pipistrel along with research and development costs for initiatives related to the development of sustainable aviation solutions.
Finance
Finance segment revenues were $11 million, and profit was $5 million in the fourth quarter of 2022.