Textron Inc. · NYSE:TXT
Textron — Q4 2018 Earnings Presentation
13 slides from Textron's earnings presentation, Jan 24, 2019
Slide 1: Q4 2018 Earnings Call Presentation
Q4 2018 Earnings Call Presentation January 24, 2019 The data in this package should be read in conjunction with the Textron earnings release and accompanying tables.
Slide 2: Forward-Looking Information
Forward-Looking Information Certain statements in this package and other oral and written statements made by Textron from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or othe
Slide 3: Key Data – Q4 2018
Key Data – Q4 2018 Q4 2018 Q4 2017 Revenues $3.8B $4.0B Segment Profit $397M $360M EPS from Continuing Operations $1.02 $(0.40) Adjusted EPS from Continuing $1.15 $0.74 Operations* Manufacturing Cash Flow $284M $477M Before Pension Contributions* Pension Contributions $15M $20M *Adjusted EPS from co
Slide 4: Key Data – Full Year 2018
Key Data – Full Year 2018 Full-Year 2018 Full-Year 2017 Revenues $14.0B $14.2B Segment Profit $1,267M $1,169M EPS from Continuing Operations $4.83 $1.14 Adjusted EPS from Continuing $3.34 $2.45 Operations* Manufacturing Cash Flow $784M $872M Before Pension Contributions* Pension Contributions $52M $
Slide 5: Textron Consolidated Net Debt
Textron Consolidated Net Debt ($ amounts in millions) Full-Year 2018 Full-Year 2017 Cash $1,107 $1,262 Finance Group Debt 718 824 TXT Mfg. Group Debt 3,066 3,088 Total Debt 3,784 3,912 Net Debt $2,677 $2,650 Textron Inc. Q4 2018 Earnings Call Presentation; January 24, 2019 5
Slide 6: Q4 2018 Revenue Growth
Q4 2018 Revenue Growth Organic Revenue Divestiture Organic FX Impact Growth Growth Impact Growth Un(Fav) Before FX Textron Aviation 11.6% - 11.6% - 11.6% Bell (15.9%) - (15.9%) - (15.9%) Textron Systems (29.4%) - (29.4%) - (29.4%) Industrial (11.5%) 11.1% (0.4%) 1.5% 1.1% Manufacturing (6.7%) 3.1% (
Slide 7: Finance Segment Key Statistics
Finance Segment Key Statistics ($ amounts in millions) Q4 2018 Q3 2018 60+ Delinquency $14 $41 Non-accrual $40 $44 Finance Receivables $789 $815 Shareholders’ Equity $191 $186 Textron Inc. Q4 2018 Earnings Call Presentation; January 24, 2019 7
Slide 8: Outlook – Full Year 2019
Outlook – Full Year 2019 EPS from Continuing Operations $3.55 - $3.75 Manufacturing Cash Flow $700M - $800M Before Pension Contributions* Pension Contributions ~$50M *Manufacturing cash flow before pension contributions is a non-GAAP measure that is defined and reconciled to GAAP in our earnings rel
Slide 9: Segment Outlook – Full Year 2019
Segment Outlook – Full Year 2019 Segment Revenue Profitability Textron Aviation ~$5.5B ~10.0% Bell ~$3.2B ~12.5% Textron Systems ~$1.4B ~9.0% Industrial ~$3.8B ~7.0% Finance ~$60M ~$20M Textron Inc. Q4 2018 Earnings Call Presentation; January 24, 2019 9
Slide 10: Pension Outlook – Full Year 2019
Pension Outlook – Full Year 2019 2019E 2018 Discount Rates 4.35% 3.75% Total Pension Income/(Cost) ~$10M ~$(33M) Assumed Long-Term Rate of 7.75% 7.75% Return Pension Contributions ~$50M $52M Textron Inc. Q4 2018 Earnings Call Presentation; January 24, 2019 10
Slide 11: Outlook – Full Year 2019
Outlook – Full Year 2019 ($ amounts in millions) 2019E 2018 Research & Development ~$620 $643 % of Mfg Revenues 4.5% 4.6% CapEx ~$380 $369 Depreciation ~$380 $358 Textron Inc. Q4 2018 Earnings Call Presentation; January 24, 2019 11
Slide 12: Outlook – Full Year 2019
Outlook – Full Year 2019 ($ amounts in millions) 2019E 2018 Corporate Expenses ~$140 $119 Interest Expense, net for ~$145 $135 Manufacturing Group Income Tax Rate (from ~20.0% 16.6% continuing operations) Textron Inc. Q4 2018 Earnings Call Presentation; January 24, 2019 12
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