Textron Inc. · NYSE:TXT
Textron — Q4 2016 Earnings Presentation
12 slides from Textron's earnings presentation, Jan 25, 2017
Slide 1: Q4 2016 Earnings Call Presentation
Q4 2016 Earnings Call Presentation January 25, 2017 The data in this package should be read in conjunction with the Textron earnings release and accompanying tables. Textron Inc. Q4 2016 Earnings Call Presentation; January 25, 2017 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, 2016
Key Data - Fourth Quarter, 2016 Q4 2016 Q4 2015 Revenues $3.8B $3.9B Segment Profit $391M $378M Adjusted EPS from $0.80 $0.81 Continuing Operations* Manufacturing Cash Flow Before Pension $727M $534M Contributions* Pension Contributions $14M $18M * Adjusted EPS from continuing operations and manufac
Slide 4: Key Data – Full-Year, 2016
Key Data – Full-Year, 2016 Full-Year Full-Year 2016 2015 Revenues $13.8B $13.4B Segment Profit $1,309M $1,255M Adjusted EPS from Continuing $2.62 $2.50 Operations* Manufacturing Cash Flow $573M $631M Before Pension Contributions* Pension Contributions $50M $68M * Adjusted EPS from continuing operati
Slide 5: Textron Consolidated Net Debt
Textron Consolidated Net Debt ($, millions) YE 2016 YE 2015 Cash $1,298 $1,005 Finance Group Debt 903 913 Manufacturing Group Debt 2,777 2,697 Total Debt 3,680 3,610 Net Debt $2,382 $2,605 Textron Inc. Q4 2016 Earnings Call Presentation; January 25, 2017 5
Slide 6: Q4 2016 Sales Growth
Q4 2016 Sales Growth FX Organic Sales M&A Organic Impact Growth Growth Impact Growth Unfav./ Before (Fav.) FX Textron Aviation (3.5%) (1.0%) (4.5%) - (4.5%) Bell (14.3%) - (14.3%) - (14.3%) Textron Systems 14.9% (2.2%) 12.7% - 12.7% Industrial 3.8% (0.7%) 3.1% 0.9% 4.0% Manufacturing (2.5%) (0.8%) (
Slide 7: Finance Segment Key Statistics
Finance Segment Key Statistics ($, millions) Q4 2016 Q3 2016 60+ Delinquency $40 $85 Non-accrual $87 $90 Finance Receivables $976 $1,013 Shareholders’ Equity $157 $161 Textron Inc. Q4 2016 Earnings Call Presentation; January 25, 2017 7
Slide 8: Outlook – Full Year, 2017
Outlook – Full Year, 2017 Adjusted EPS from Continuing $2.50 - $2.70 Operations* Manufacturing Cash Flow $650M - $750M Before Pension Contributions* Pension Contributions ~$55M * Adjusted EPS from continuing operations and manufacturing cash flow before pension contributions are non-GAAP measures th
Slide 9: Segment Outlook – Full Year, 2017
Segment Outlook – Full Year, 2017 Segment Revenue Profitability Textron Aviation ~8.0%* ~$5.0B Inclusive of Scorpion ~7.0%* Bell ~$3.3B ~11.0% Textron Systems ~$1.9B ~8.5%* Industrial ~$4.0B ~9.0%* Finance ~$80M ~$20 million * In 2017, financial reporting for the Scorpion program has been transition
Slide 10: Pension Outlook – Full Year, 2017
Pension Outlook – Full Year, 2017 2017E 2016 Discount Rates 4.25% 4.75% Total Pension Cost ~$81M $81M Assumed Long-Term Rate of 7.75% 7.75% Return Pension Contributions ~$55M $50M Textron Inc. Q4 2016 Earnings Call Presentation; January 25, 2017 10
Slide 11: Outlook – Full Year, 2017
Outlook – Full Year, 2017 2017E 2016 R&D ~$495M $582M % of Mfg Revenues 3.5% 4.2% CapEx ~$440M $446M Depreciation ~$400M $368M Textron Inc. Q4 2016 Earnings Call Presentation; January 25, 2017 11
Slide 12: Outlook – Full Year, 2017
Outlook – Full Year, 2017 2017E 2016 Corporate Expenses ~$115M $172M Interest Expense, net for ~$140M $138M Manufacturing group Tax Rate (from continuing ~30.0% 28.4% operations) Textron Inc. Q4 2016 Earnings Call Presentation; January 25, 2017 12