Textron's Aviation Business Is Set To Fly From Multiple Catalysts
Alpha Gen Capital
Alpha Gen Capital
Yesterday, 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.
Wed, Aug. 10, 12:40 PM
- Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) could sell its Learjet business, and Cessna-maker Textron (NYSE:TXT) is a likely buyer, according to analysts at Cowen, who say a Learjet sale would help the company lighten its debt load, which includes $6.7B maturing in 2018-23.
- Lear has lost market share in the business jet segment to the Cessna XLS plus, capturing 33% of the market YTD vs. 60% in 2015, Cowen says.
- Separately, Bombardier wins a US$1.3B U.K. government contract to supply 660 new trains to expand rail services in eastern England.
Wed, Jul. 27, 4:49 PM
- The Czech government says it approved a deal with GE Aviation (NYSE:GE) for an investment in a new turboprop development, test and engine production headquarters that will cost ~€350M ($384.7M).
- GE announced last November it had teamed up with Textron (NYSE:TXT) to produce an all-new turboprop aircraft and engine for the general aviation market, part of an effort GE expects will generate more than $1B/year in engine sales by 2020.
- Production should start up by 2022 with expected output of 400 engines/year before growing to 600/year in 2026, according to local reports.
Tue, Jul. 26, 4:57 PM
Fri, Jul. 22, 6:38 AM
Thu, Jul. 21, 5:30 PM
Mon, Jul. 11, 4:19 AM
- The Farnborough Airshow takes off today with executives from the aviation industry flying in to complete deals and unveil their latest technology.
- Brexit uncertainty could cloud demand for big jets, as Airbus (OTCPK:EADSY) and Boeing (NYSE:BA) look to snap up some scarce orders from the big carriers.
- Among the exhibitors: AJRD, AME, CAE, ERJ, FLIR, GD, HRS, LLL, LMT, RTN, SNA, SPR, TXT, UTX
Mon, May 23, 3:21 AM
- President Obama kicked off his three-day visit to Vietnam with an announcement declaring the end of a U.S. arms embargo on the country, a ban that had been in place for decades.
- "We've come here as a symbol of the renewed ties....and the comprehensive partnership we have created over the course of my presidency," Obama said at a press conference.
- The trip will also see the nations discuss the Trans-Pacific Partnership, which is expected to usher in a new period of growth for export-oriented Vietnam.
- Related tickers: GD BA, NOC, LMT, RTN, OA, HII, HON, UTX, OTCPK:EADSF, ITT, TXT, LLL, OTCPK:BAESY, OTCPK:FINMY, COL
- ETFs: VNM
Wed, Apr. 27, 10:20 AM
- Textron (NYSE:TXT) declares $0.02/share quarterly dividend, in line with previous.
- Forward yield 0.2%
- Payable July 1; for shareholders of record June 10; ex-div June 8.