DOW JONES NEWSWIRES
Textron Inc. (TXT) said it will cut 2,200 jobs, or 5.5% of its worldwide work force, and will shut most of its commercial finance business to enhance its long-term liquidity position amid unstable credit markets.
The aircraft company also cut its fourth-quarter forecast sharply, and shares fell 4.8% to $14.60 in after-hours trading.
Textron said it would use orderly liquidation and some sales to close all of Textron Financial Corp., except the part that helps finance customer purchases of Textron-manufactured products. Amid turmoil in world credit markets, Textron in October had said it would cut the size of its commercial finance business.
In announcing the job cuts, Textron, which makes Bell helicopters and Cessna jets, said it was expanding its cost-cutting program announced in October because of the declining economy. It now expects fourth-quarter restructuring charges of about $65 million, with about $20 million of that related to write-downs of plants it expects to close.
The cuts are expected to save $100 million in 2009, and Textron said it "anticipates that further headcount reductions and other actions could lead to additional restructuring costs beyond those incurred in 2008."
The company now expects a fourth-quarter net loss of 81 cents to 91 cents a share. Excluding items, earnings from continuing operations will be between 30 cents and 40 cents a share, compared to its October estimate of 80 cents to 90 cents.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; Kathy.Shwiff@dowjones.com
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Publié le 22 Décembre 2008 Copyright © 2008 Dowjones