Textron Surges as Corporate Jet Market Revival Takes HoldJulie Johnsson
Textron Corp. surged the most since December as rising demand for its Cessna jets signaled a revival for the luxury-aircraft market from a slump dating to 2008.
Buyer interest in Cessna’s small and mid-sized business planes started increasing in September, and demand is poised to outpace the number of planes available for delivery this quarter, Chief Executive Officer Scott Donnelly said today.
“We’ve seen a pretty significant uptick in terms of the demand, the level of activity out there,” Donnelly said during a webcast after the Providence, Rhode Island-based company reported third-quarter earnings. “And it’s pretty much across the board.”
Textron increased 8.9 percent to $36.65 at the close in New York, the biggest daily gain since Dec. 20. The Standard & Poor’s 500 Index rose, buoyed by profits from companies including Textron, Morgan Stanley and General Electric Co. that beat analysts’ estimates.
Quarterly profit increased 61 percent to $159 million, Textron said today. Revenue rose 18 percent to $3.43 billion, trailing the $3.63 billion average of 10 analysts’ estimates compiled by Bloomberg.
Textron boosted its full-year earnings forecast to $2.05 to $2.12 a share, up from a previous projection of $1.92 to $2.12, to reflect increased aircraft sales, Donnelly said. Besides Cessna and Beechcraft planes, Textron makes Bell helicopters and military vehicles.