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| Statement |
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| So it just continues to be a strong demand environment |
| Aviation solid demand across our jet and turboprop products resulted in our strongest order quarter of the year with a 12% increase over the third quarter of 2022 |
| And by the way, I think that's a very robust strong market right now, which is fabulous but they sit down with us in real time |
| We're generating strong cash flows, and we'll continue to use that on the share buyback |
| The third quarter was a strong quarter for Textron with revenues up at Aviation, Industrial and Systems, while revenues were flat at Bell versus the prior year |
| I mean I think our balance sheet is a good place |
| Is that still how you're thinking about it or not? I mean how do we think about the Industrials business in the context of the kind of greater Textron, which seems to be evolving quickly towards a bigger A&D company? Scott Donnelly Ron, I mean the way we're looking at industrial right now is us providing good growth and strong performance improvements and generate good cash |
| And then at Aviation, we're also seeing, despite some of the volume headwinds, we're seeing strong profit growth and kind of a strong overall year-over-year growth |
| Overall, revenues were flat in the quarter with improved margin performance |
| So I think the business is executing well |
| During the quarter, a rock order 15 505 aircraft to replace their pilot trading fleet, continuing with the success of Bell 505 as a military trainer throughout the world |
| Textron Systems, we saw higher revenues and margins in the quarter |
| The margins are strong |
| We saw higher revenues in the quarter, driven by higher volume in both Specialized Vehicle and Kautex |
| Specialized Vehicles, we continue to see strong demand in the fleet gulf business |
| Within Kautex, we saw increased volumes year-over-year driven by the recovery in the North American auto market |
| They'll be at least the top end of our original guidance range, we're seeing, frankly better volumes and solid and strong margin performance in the Industrial segment |
| So I think the business is performing well |
| We're seeing strong performance at Systems |
| The sentinel program, obviously, we're one of the partners with Northrop Grumman that program continues to grow nicely |
| But the only color I would give you is I expect that you certainly would expect to see good growth and over the 2023 number |
| We had a nice strong growth in the quarter |
| Scott, on Systems, the performance there continues to be really, really good, and there was obviously a bullish tone down the USA around just a lot of the modernization efforts |
| '24 should be a strong year for us |
| So we're really excited about that |
| But for sure, versus our estimation at the beginning of the year 1:1, the end market continues to be stronger than even we would have expected, which is obviously a positive |
| We've had strong demand across most of those product lines |
| And again that Denali is going to be a great product that's, I think, doing well here and going through the certification process right now |
| It generates good margin |
| So we feel good about where that is in the marketplace |
| Statement |
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| It's down sequentially and the incremental -- the year-over-year incremental, I think, is a little light of what you normally look for despite healthy unit and price |
| The lower deliveries reflected manufacturing disruptions related to supply chain shortages |
| It's a challenge in the industry still, and we're going to continue to fight our way through it |
| Robert Stallard Scott, there's some concerns yet again about the outlook for the economy and higher interest rates and all that |
| So a lot of the numbers miss and a lot of the challenge, frankly, in Q4 in terms of the units is around those 505 |
| Some of them still are struggling with a lot of the same kinds of supplier and labor challenges that we talk about in aviation, and that's -- we're still -- have a fair bit of inefficiencies in some of those factories as we manage our way through that |
| And does that bode for next year being a lot bigger than what you might have thought before? Scott Donnelly I would say, George, that for sure, we are delivering fewer aircraft than we originally expected, and that is as a result of these issues and challenges that we're still seeing in the supply chain |
| Obviously, everybody was a little bit worried about the UAW situation |
| We had a couple of issues very specific around our 505, which is a fairly high-volume product, but a relatively speaking, lower dollar per unit volume |
| So I do think that we've gone through some challenging phase with customers who are kind of accustomed to say, "Well, geez, I should be able to get that in 3 months or 6 months" and say, no, guys, actually, it's a couple of years |
| On the commercial side, Bell delivered 23 helicopters, down from 49 in last year's third quarter |
| Textron eAviation segment revenues were $7 million and segment loss was $19 million in the quarter, primarily reflecting research and development costs |
| So we're continuing to see that challenge across the number of aircraft types |
| So your deliveries were down 50% at Bell and Commercial |
| We -- without a doubt, are still being impacted by performance issues, just the amount of efficiencies that are driven by those parts that are showing up late and labor turnover, which I think everybody is experiencing |
| But the miss on a number of those very light helicopters won't have a big material impact to the performance overall at Bell |
| But it's still a problem, right? So it's -- I wouldn't say we have any one big like engine that's just driving this |
| David Strauss And I apologize if you've already touched on this, and I may have missed it, but the supply chain issues that you called out on the commercial helicopter side |
| If there was a slowdown, and we expect to see that number come down |
| The number of parts that come in late to PO has been declining through the course of the year |
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