Textron Inc. · NYSE:TXT
Textron — Q4 2017 Earnings Presentation
12 slides from Textron's earnings presentation, Jan 31, 2018
Slide 1: Q4 2017 Earnings Call Presentation
Q4 2017 Earnings Call Presentation January 31, 2018 The data in this package should be read in conjunction with the Textron earnings release and accompanying tables. Textron Inc. Q4 2017 Earnings Call Presentation; January 31, 2018 1
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 – Fourth Quarter, 2017
Key Data – Fourth Quarter, 2017 Q4 2017 Q4 2016 Revenues $4.0B $3.8B Segment Profit $360M $391M Adjusted EPS from Continuing $0.74 $0.80 Operations* Manufacturing Cash Flow $474M $727M Before Pension Contributions* Pension Contributions $20M $14M * Adjusted EPS from continuing operations and Manufac
Slide 4: Key Data – Full-Year, 2017
Key Data – Full-Year, 2017 Full-Year Full-Year 2017 2016 Revenues $14.2B $13.8B Segment Profit $1,169M $1,309M Adjusted EPS from Continuing $2.45 $2.62 Operations* Manufacturing Cash Flow $889M $573M Before Pension Contributions* Pension Contributions $358M $50M * Adjusted EPS from continuing operat
Slide 5: Textron Consolidated Net Debt
Textron Consolidated Net Debt Full-Year Full-Year 2017 2016 Cash $1,262M $1,298M Finance Group Debt 824M 903M TXT Mfg. Group Debt 3,088M 2,777M Total Debt 3,912M 3,680M Net Debt $2,650M $2,382M Textron Inc. Q4 2017 Earnings Call Presentation; January 31, 2018 5
Slide 6: Q4 2017 Sales Growth
Q4 2017 Sales Growth FX Organic Sales M&A Organic Impact Growth Growth Impact Growth Unfav./ Before (Fav.) FX Textron Aviation (3.1%) - (3.1%) - (3.1%) Bell 10.8 - 10.8 - 10.8 Textron Systems (8.1%) - (8.1%) - (8.1%) Industrial 19.6% (13.0%) 6.6% (2.7%) 3.9% Manufacturing 5.1% (3.2%) 1.9% (0.7%) 1.2
Slide 7: Finance Segment Key Statistics
Finance Segment Key Statistics Q4 2017 Q3 2017 60+ Delinquency $34M $50M Non-accrual $61M $70M Finance Receivables $850M $858M Shareholders’ Equity $216M $170M Textron Inc. Q4 2017 Earnings Call Presentation; January 31, 2018 7
Slide 8: Outlook – Full Year, 2018
Outlook – Full Year, 2018 EPS from Continuing Operations $2.95 - $3.15 Manufacturing Cash Flow $700M - $800M Before Pension Contributions* Pension Contributions ~$55M * Manufacturing cash flow before pension contributions is a non-GAAP measure that is defined and reconciled to GAAP in our earnings r
Slide 9: Segment Outlook – Full Year, 2018
Segment Outlook – Full Year, 2018 Segment Revenue Profitability Textron Aviation ~$5.0B ~8.0%* Bell ~$3.2B ~12.0% Textron Systems ~$1.6B ~8.0%* Industrial ~$4.7B ~8.0%* Finance ~$70M ~$20M Textron Inc. Q4 2017 Earnings Call Presentation; January 31, 2018 9
Slide 10: Pension Outlook – Full Year, 2018
Pension Outlook – Full Year, 2018 2018E 2017 Discount Rates 3.75% 4.25% Total Pension Cost ~$40M $81M Assumed Long-Term Rate of 7.75% 7.75% Return Pension Contributions ~$55M $358M Textron Inc. Q4 2017 Earnings Call Presentation; January 31, 2018 10
Slide 11: Outlook – Full Year, 2018 (R&D, CapEx, Depreciation)
Outlook – Full Year, 2018 2018E 2017 Gross R&D ~$620M $634M % of Mfg Revenues 4.2% 4.5% CapEx ~$525M $423M Depreciation ~$400M $362M Textron Inc. Q4 2017 Earnings Call Presentation; January 31, 2018 11
Slide 12: Outlook – Full Year, 2018 (Corporate Expenses, Interest, Tax)
Outlook – Full Year, 2018 2018E 2017 Corporate Expenses ~$130M $132M Interest Expense, net for ~$140M $145M Manufacturing group Income Tax Rate (from ~22.5% 26.2% continuing operations) Textron Inc. Q4 2017 Earnings Call Presentation; January 31, 2018 12