Textron Lowers Profit Forecast Due to Strike

(Reuters) – Cessna jet maker Textron (NYSE:TXT) lowered its annual profit forecast on Thursday, citing the impact of a four-week strike by 5,000 workers at its Wichita plant.

The company now expects its 2024 adjusted profit per share to be between $5.40 and $5.60, down from its previous forecast of $6.20 to $6.40.

CEO Scott Donnelly stated, "The labor disruption adversely impacted our third-quarter results, and we expect it to negatively affect fourth-quarter financials."

The strike, which began on Sept. 23, ended last week with the ratification of a new contract. This contract offers workers a 31% pay hike over five years and a $3,000 lump sum payment each year, along with other benefits.

The Providence, Rhode Island-based company also missed Wall Street estimates for third-quarter profit and revenue on Thursday, as disruptions caused by the strike hurt sales in its aviation segment.

Aircraft manufacturers are also facing delivery delays and reduced margins due to ongoing supply chain issues in the market. Peer General Dynamics (NYSE:GD) lowered its annual G700 business jet delivery targets earlier this week amid these challenges.

Textron posted an adjusted profit of $1.40 per share for the third quarter, missing analysts' average estimate of $1.49, according to data compiled by LSEG. The company's revenue for the three months ending Sept. 28 was $3.43 billion, below estimates of $3.51 billion.

On Wednesday, Textron named insider David Rosenberg as its new chief financial officer, succeeding company veteran Frank Connor, who plans to retire in 2025.