Textron Lowers Earnings Forecast; To Close 50 Plants
Textron Lowers Earnings Forecast; To Close 50 Plants
John Wolz
Textron Inc. slashed its earnings outlook for the remainder of the year, and said it will close 50 more plants and cut an additional 2,500 jobs.
Textron Inc. said the Sept. 11 attacks and the weak economy will hurt earnings for the rest of the year
Providence, R.I.-based Textron now expects a third-quarter loss of about 25 cents per share and a smaller-than-expected profit in the fourth quarter of 40� to 60�.
Analysts had been predicting a third-quarter profit of 71� and a fourth-quarter profit of $1.05.
Textron stock fell 24% in the first day after the announcement.
Textron had already begun a restructuring program to cut more than 5,000 jobs. With the new cuts the total will be a 12% reduction of its global work force.
Textron said its automotive, fastening systems, industrial products, Bell helicopters and Cessna aircraft businesses have all suffered in the slowing economy.
In addition, Textron announced COO John Janitz has departed.
CEO Lewis Campbell is taking the COO and president duties. �2001 FastenerNews.com
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