Jet Deliveries Power Cessna's Fourth-Quarter Profit Increase
The Wichita Eagle is reporting that Cessna Aircraft Company’s revenue increased $22 million and profit rose $10 million in the fourth quarter of 2013 because of an increase in jet deliveries. Cessna delivered 62 new Citations in the quarter, compared to 53 in the fourth quarter of 2012. Revenues for the fourth quarter of 2013 totaled $923 million, compared to $901 million in the fourth quarter of 2012. Profits totaled $33 million for the fourth quarter, up from $23 million for the same portion of 2012. For the year, however, deliveries were lower, 139 Citations in 2013, compared with 181 in 2012. Cessna recorded an overall loss of $48 million in 2013, well down from its $82 million profit in 2012.
In a conference call, Scott Ernest, CEO of Cessna, said, “The market is still challenging. Growth at Cessna in 2014 will be driven by new products, including the Citation M2, Sovereign and Citation X. New products matter a lot.” Cessna’s backlog at the end of the fourth quarter totaled $1 billion, down $54 million from the end of the third quarter. Cessna's parent company, Textron, reported revenue for the quarter of $3.5 billion, compared to $3.36 billion a year ago. It recorded net income of $167 million, compared to $148 million in the last quarter of 2012.