Textron's Aviation Business Is Set To Fly From Multiple Catalysts
Alpha Gen Capital
Alpha Gen Capital
Thu, Dec. 1, 4:00 AM
- The EU plans to boost its defense budget to its highest level in over a decade, setting up a €5B fund and sending a signal to Donald Trump that it intends to pay for its own security.
- "This is not about an EU army, this is not about spending on the military instead of social security," European Commission Vice President Jyrki Katainen said. "We face multiplying threats and we must act."
- Related tickers: LMT, RTN, GD, NOC, OA, HII, HON, UTX, ITT, TXT, LLL, COL
Tue, Nov. 22, 9:38 AM| Tue, Nov. 22, 9:38 AM
Sun, Nov. 13, 9:27 AM
- As part of its plan to expand in the growing industry, Honda (NYSE:HMC) expects to ramp up business jet production and assemble 80 planes annually by March 2019, up from 36 currently.
- The company began deliveries of its $4.5M jet in December and has received around 100 orders so far, mainly from customers in North America and Europe.
- It competes with similar-sized aircraft produced by Cessna (NYSE:TXT), Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) and Embraer (NYSE:ERJ).
Wed, Nov. 9, 5:34 AM
- Donald Trump has called for eliminating the sequester on defense spending and initiating a military buildup, boosting troop levels and the number of ships and aircraft.
- He seeks to fully offset the cost through "common sense reforms that eliminate government waste and budget gimmicks" and additional payments from countries where the U.S. has military bases, including Germany, Saudi Arabia and Japan.
- Premarket movement: LMT +4.5%, RTN +1.7%, GD, BA, NOC, OA, HII, HON, UTX, OTCPK:EADSF, ITT, TXT, LLL, OTCPK:BAESY, OTCPK:FINMY, COL
Tue, Nov. 1, 11:21 AM
- Textron's (TXT -0.2%) Cessna subsidiary says it is going ahead with a new large-cabin business jet, the Hemisphere, and will use an engine made by Safran (OTCPK:SAFRF) that has suffered delays.
- Cessna says it chose Safran's Silvercrest engine to power the Hemisphere even though Dassault Aviation delayed the first flight of its Falcon 5X jet, originally set for summer 2015, because of delays in getting Silvercrest engines.
- Safran is expected to certify the engine for the Hemisphere in spring 2018, and Cessna plans first flight of the Hemisphere in early 2019.
Mon, Oct. 31, 8:30 AM
- Business jet makers will deliver fewer planes next year, according to Honeywell, deepening a downward spiral caused by slow global growth and lower oil prices.
- The forecast anticipates a low single-digit percentage decline in the number of jets delivered in 2017 as buyers wait for models arriving in 2018 and 2019.
- Honeywell also cut its 10-year outlook for business jet deliveries, saying it expects plane manufacturers to supply 8,600 new jets valued at $255B through 2026, down from 9,200 jets worth $270B it forecast last year.
- Related tickers: BA, OTCPK:EADSF, OTCQX:BDRAF, OTCQX:BDRBF, OTC:DUAVF, ERJ, GD, OTCPK:PIAGF, TXT
Mon, Oct. 31, 4:55 AM
- Hawkers of civil and military aircraft - and the money to finance them - will try to drum up new business at aerospace expos this week, conscious their high-risk industry is approaching a turning point.
- China's biggest aviation event - Airshow China - starts in Zhuhai tomorrow. A defense trade show will also take place in Jakarta and an air finance conference in Hong Kong, as well as the annual U.S. business jet jamboree in Orlando, Florida.
- Among the U.S. exhibitors: AME, BA, ERJ, HON, HXL, LLL, LMT, SNA, TKR, TXT, UTX
Fri, Oct. 28, 7:34 AM
- The Pentagon has canceled 22 programs in advanced development after spending a combined $58.3B on them since 2002, according to the DoD's latest assessment of its acquisition performance.
- Among the weapons scrapped were Boeing's (NYSE:BA) ground-based vehicle network for the Army, a Northrop Grumman (NYSE:NOC) mini-submarine for Navy SEALs and a chopper from Textron (NYSE:TXT) Bell Helicopter unit.
Wed, Oct. 26, 1:06 PM
Thu, Oct. 20, 6:35 AM
Wed, Oct. 19, 5:30 PM
Sat, Oct. 8, 8:25 AM
- “This is the bottom” for Honeywell's (NYSE:HON) businesses exposed to the oil and gas industries, but troubles in the business jet industry “will get worse” next year, CEO David Cote said Friday, a day after the company cut its earnings and sales forecast, causing shares to slide 7.5% in their worst showing in five years.
- "This was a surprise," says William Blair's Nick Heymann, as HON had been considered a safe-haven stock amid sluggish industrial growth, on Cote's reputation and record of delivering on profit targets.
- Morgan Stanley analyst Nigel Coe compared HON’s announcement to a “paella bowl” dropped in front of investors and said “credibility is becoming a growing issue.”
- Other analysts are more confident: J.P. Morgan's Steve Tusa says "it's not that bad in the grand scheme," noting that HON’s profits are off ~5% YTD, roughly in line with its industrial peers.
- “While this quarter and maybe next quarter look to be a little bit worse than anticipated, we still believe they’re well positioned long term to benefit from growth opportunities," according to Edward Jones' Jeff WIndau.
- HON supplies parts to Textron (NYSE:TXT) and General Dynamics (NYSE:GD), which fell a respective 3.6% and 0.8% yesterday, while aerospace parts makers Heico (NYSE:HEI), B/E Aerospace (NASDAQ:BEAV) and TransDigm (NYSE:TDG) each slid more than 1%; also, GE slipped 0.6%, United Technologies (NYSE:UTX) fell 1.5%, and Boeing (NYSE:BA) lost 0.4%.
Fri, Oct. 7, 9:14 AM
Fri, Sep. 30, 10:58 AM
- Textron's (NYSE:TXT) Bell Helicopter unit says it is cooperating with authorities following this week's helicopter crash offshore Angola that killed at least four people, including an employee of pipeline company Tenaris (NYSE:TS); two people from the flight remain missing.
- The Bell helicopter was transferring six people to Chevron’s Tombua-Landana offshore oil platform when the accident occurred on Sept. 26.
Tue, Aug. 30, 5:57 PM
- Textron (NYSE:TXT) discloses a plan to restructure its businesses by implementing headcount reductions, facility consolidations and other actions to improve overall operating efficiency.
- TXT says the restructuring will mostly affect its Textron systems and industrial segments, which last year generated more than $5B in combined revenue, or ~38% of the company’s total revenue.
- The plan calls for the end of production of its sensor-fuzed weapon product in light of reduced orders, and the combination of its Jacobsen turf maintenance business with the specialized vehicles businesses.
- TXT expects to incur related pre-tax charges of $110M-$140M, primarily in Q3.
Mon, Aug. 22, 5:52 PM
- Textron (NYSE:TXT) says it would be interested in buying Bombardier’s (OTCQX:BDRAF, OTCQX:BDRBF) struggling Learjet business "at the right price."
- A deal would provide Bombardier with a potential exit from the light business jet market, which CEO Alain Bellemare described as “oversupplied” and “remarkably competitive” on the company’s quarterly earnings call earlier this month.
- Bombardier delivered only six Learjet vehicles in H1 of this year, down from 14 in 2015, and it recently cancelled plans to develop a new Learjet 85.
- Cowen analysts have advocated a Cessna-Learjet combination, saying it could generate cost savings - both companies are based in Wichita, Kan. - and that TXT could upgrade existing Learjet customers to its new-model Cessnas.