q4 2017 earnings call presentation · 2018-01-31 · textron inc. q4 2017 earnings call...

Textron Inc. Q4 2017 Earnings Call Presentation; January 31, 2018

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Q4 2017 Earnings Call Presentation

January 31, 2018

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 2017 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.

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Key Data – Fourth Quarter, 2017

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Q4 2017 Q4 2016

Revenues $4.0B $3.8B

Segment Profit $360M $391M

Adjusted EPS from Continuing Operations*

$0.74 $0.80

Manufacturing Cash FlowBefore Pension Contributions*

$474M $727M

Pension Contributions $20M $14M

* 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, 2017

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Full-Year 2017

Full-Year 2016

Revenues $14.2B $13.8B

Segment Profit $1,169M $1,309M

Adjusted EPS from Continuing Operations*

$2.45 $2.62


$889M $573M

Pension Contributions $358M $50M

* 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.


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Textron Consolidated Net Debt

Full-Year 2017

Full-Year 2016

Cash $1,262M $1,298M

Finance Group Debt 824M 903M

TXT Mfg. Group Debt 3,088M 2,777M

Total Debt 3,912M 3,680M

Net Debt $2,650M $2,382M


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Q4 2017 Sales Growth

Sales Growth

M&AImpact

Organic Growth

FX Impact Unfav./

(Fav.)

OrganicGrowth Before

FX

Textron Aviation (3.1%) - (3.1%) - (3.1%)

Bell 10.8 - 10.8 - 10.8

Textron Systems (8.1%) - (8.1%) - (8.1%)

Industrial 19.6% (13.0%) 6.6% (2.7%) 3.9%

Manufacturing 5.1% (3.2%) 1.9% (0.7%) 1.2%

Finance (16.7%) - (16.7%) - (16.7%)

Total Segments 5.0% (3.2%) 1.8% (0.7%) 1.1%


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Finance Segment Key Statistics

Q4 2017 Q3 2017

60+ Delinquency $34M $50M

Non-accrual $61M $70M

Finance Receivables $850M $858M

Shareholders’ Equity $216M $170M


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Outlook – Full Year, 2018

EPS from Continuing Operations $2.95 - $3.15


$700M - $800M

Pension Contributions ~$55M

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


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Segment Outlook – Full Year, 2018

Segment Revenue Profitability

Textron Aviation ~$5.0B ~8.0%*

Bell ~$3.2B ~12.0%

Textron Systems ~$1.6B ~8.0%*

Industrial ~$4.7B ~8.0%*

Finance ~$70M ~$20M


2018E 2017

Discount Rates 3.75% 4.25%

Total Pension Cost ~$40M $81M

Assumed Long-Term Rate of Return

7.75% 7.75%

Pension Contributions ~$55M $358M

Pension Outlook – Full Year, 2018

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2018E 2017

Gross R&D% of Mfg Revenues

~$620M4.2%

$634M4.5%

CapEx ~$525M $423M

Depreciation ~$400M $362M


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2018E 2017

Corporate Expenses ~$130M $132M

Interest Expense, net for Manufacturing group

~$140M $145M

Income Tax Rate (from continuing operations)

~22.5% 26.2%

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q4 2017 earnings call presentation · 2018-01-31 · textron inc. q4 2017 earnings call...

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