Summary: Textron Inc.

Cessna business jet production likely to increase modestly in 2019, driven by new models and a slowly improving market. Production of Cessna business jets declined significantly after the 2008 financial crisis and has been slowly improving since bottoming out in 2013. We expect modest growth in 2019 as the company begins deliveries of its new Longitude jet and deliveries of legacy models increase as the business jet market sees some signs of life after being depressed for almost a decade. However, this improvement in the market could stall again if U.S. economic growth weakens materially. We expect margins to continue to improve at Textron Aviation as volumes increase, the company rationalizes its product line, and pricing firms up, despite relatively

...Cessna business jet production likely to increase modestly in 2019, driven by new models and a slowly improving market. Production of Cessna business jets declined significantly after the 2008 financial crisis and has been slowly improving since bottoming out in 2013. We expect modest growth in 2019 as the company begins deliveries of its new Longitude jet and deliveries of legacy models increase as the business jet market sees some signs of life after being depressed for almost a decade. However, this improvement in the market could stall again if U.S. economic growth weakens materially. We expect margins to continue to improve at Textron Aviation as volumes increase, the company rationalizes its product line, and pricing firms up, despite relatively high spending on new models. Sales growth and profitability at Bell likely to moderate as production of higher margin military programs declines and commercial remains weak. We expect production of the V-22 tilt-rotor to decline over the next...

Summary