PROVIDENCE, R.I., Dec 17, 2009 (BUSINESS WIRE) — Textron (NYSE:TXT) today announced that its Cessna business unit continues to see stabilization in the business jet market. Cessna management has observed that availability of used aircraft is declining, customer utilization of the existing fleet has stabilized, availability of financing is improving and customer inquiries for new orders are beginning to increase.At the same time, Cessna has continued efforts with customers to clarify the status of long-term orders remaining in backlog. The company has been in discussions with a large customer concerning the cancellation of about $1.1 billion of jets it had on order with Cessna. None of these aircraft were planned for delivery through 2012.
The company expects that cancellations in the fourth quarter will reduce backlog by a total of approximately $1.7 billion. These cancellations are not expected to have a material impact on planned deliveries through 2012.
The company will provide its outlook for 2010 business jet deliveries when it releases earnings on January 28.
Based on unit sales, Cessna Aircraft Company is the world’s largest manufacturer of general aviation airplanes. Since the company was originally established in 1927, some 192,000 Cessna airplanes have been delivered around the world, including more than 6,000 Citations, making it the largest fleet of business jets in the world. More information about Cessna Aircraft Company is available at www.cessna.com
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at www.textron.com.
Forward-looking Information: Certain statements in this release are forward-looking statements and speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including but not limited to the following: [a] changes in worldwide economic and political conditions that impact demand for our products, interest rates and foreign exchange rates; [b] the interruption of production at our facilities or at our suppliers’ facilities; [c] legislative or regulatory actions impacting our operations or demand for our products;; [d] the occurrence of slowdowns or downturns in customer markets in which our products are sold or supplied; [e] changes in aircraft delivery schedules or cancellations or deferrals of orders; [f] changes in national or international government policies on the export and import of commercial products; [g] bankruptcy or other financial or performance problems at major suppliers, subcontractors or customers that could cause disruptions in our supply chain or negatively impact our customers’ ability to purchase our products ; [h] continued difficult conditions in the financial markets which may adversely impact our customers’ ability to fund or finance purchases of our products; and [i] continued volatility in the economy resulting in a prolonged downturn in the business jet market.
SOURCE: Textron Inc.
Investor Contacts: Textron Doug Wilburne, 401-457-2288 or Bill Pitts, 401-457-2288 or Media Contacts: Cessna Doug Oliver, 316-517-1927 or Textron Michael Maynard, 401-457-2474