q4 2016 earnings call presentation · textron inc. q4 2016 earnings call presentation; january 25,...

Textron Inc. Q4 2016 Earnings Call Presentation; January 25, 2017

1

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.


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 other financial measures. These forward-looking statements 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 the risks and uncertainties set forth under "Forward-Looking Information" in our fourth quarter 2016 earnings release. Additional information on risks and uncertainties that may impact forward-looking statements is discussed under "Risk Factors" in our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.

2


Key Data - Fourth Quarter, 2016

3

Q4 2016 Q4 2015

Revenues $3.8B $3.9B

Segment Profit $391M $378M

Adjusted EPS from Continuing Operations*

$0.80 $0.81

Manufacturing Cash FlowBefore Pension Contributions*

$727M $534M

Pension Contributions $14M $18M

* Adjusted EPS from continuing operations and manufacturing cash flow before pension contributions are non-GAAP measures that are defined and reconciled to GAAP in our earnings release.


Key Data – Full-Year, 2016

4

Full-Year 2016

Full-Year 2015

Revenues $13.8B $13.4B

Segment Profit $1,309M $1,255M


$2.62 $2.50


$573M $631M

Pension Contributions $50M $68M

* Adjusted EPS from continuing operations and Manufacturing cash flow before pension contributions is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release.


Textron Consolidated Net Debt

($, millions)

5

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


6

Q4 2016 Sales Growth

Sales Growth

M&AImpact

Organic Growth

FX Impact Unfav./

(Fav.)

OrganicGrowth Before

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%) (3.3%) 0.3% (3.0%)

Finance (10.0%) - (10.0%) - (10.0%)

Total Segments (2.5%) (0.8%) (3.3%) 0.2% (3.1%)


7

Finance Segment Key Statistics

Q4 2016 Q3 2016

60+ Delinquency $40 $85

Non-accrual $87 $90

Finance Receivables $976 $1,013

Shareholders’ Equity $157 $161

($, millions)


8

Outlook – Full Year, 2017


$2.50 - $2.70


$650M - $750M

Pension Contributions ~$55M

* Adjusted EPS from continuing operations and manufacturing cash flow before pension contributions are non-GAAP measures that are defined and reconciled to GAAP in our earnings release.


9

Segment Outlook – Full Year, 2017

Segment Revenue Profitability

Textron Aviation

Inclusive of Scorpion~$5.0B

~8.0%*~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 transitioned to the *iTextron Aviation segment and includes ~$50M of program expense for the year


2017E 2016

Discount Rates 4.25% 4.75%

Total Pension Cost ~$81M $81M

Assumed Long-Term Rate of Return

7.75% 7.75%

Pension Contributions ~$55M $50M

Pension Outlook – Full Year, 2017

10


2017E 2016

R&D% of Mfg Revenues

~$495M3.5%

$582M4.2%

CapEx ~$440M $446M

Depreciation ~$400M $368M


11



2017E 2016

Corporate Expenses ~$115M $172M

Interest Expense, net for Manufacturing group

~$140M $138M

Tax Rate (from continuing operations)

~30.0% 28.4%

12

q4 2016 earnings call presentation · textron inc. q4 2016 earnings call presentation; january 25,...

Documents