WASHINGTON, D.C. -- Textron Inc. said Wednesday it will expand job cuts to include an additional 2,100 positions, or 5 percent, of its global work force as the recession continues to weaken demand for corporate planes.
The maker of Cessna planes, Bell helicopters, and turf-maintenance equipment announced the latest job cuts in a conference call a day after the Providence, R.I., company reported a 63-percent drop in first-quarter earnings. This brings the total number of jobs eliminated by the industrial conglomerate to 8,300, or 20 percent, of its work force.
The cuts are deeper than Textron had announced earlier this year, when the company said it would reduce its work force by 6,200 jobs, or 15 percent.
Meanwhile, its Wichita, Kansas-based Cessna Aircraft Co. unit said it will lay off 2,300 employees and close its Oregon plant as it tries to restructure its product line amid declining plane orders.
Cessna has already started laying off an initial 1,600 hourly workers across the company. An additional 700 salaried workers will lose their jobs in mid-June.
Cessna has laid off 44 percent of its work force since the first round of cuts was announced in November. The latest job losses come on top of 4,600 jobs already cut.
Textron now expects full-year restructuring charges of roughly $75 million, up from its previous estimate of $40 million. The higher charges reflect expected job cuts as demand continues to wane, along with closures of facilities.
The company said it will now deliver 290 to 300 Cessna corporate jets this year - a decline from its previous forecast of about 375 aircraft.
Last year, Textron delivered 476 planes. It set a target of delivering 535 in 2009.
Textron Chairman and CEO Lewis Campbell said it will take a considerable time before the business-jet market recovers because of the economic downturn. The company also said it will suspend its Citation Columbus, a large cabin intercontinental business jet.
Cessna delivered 69 jets in the fourth quarter, down from 95 in 2008. It also saw cancellations of 92 net orders in the quarter. Half of those were for 2009 deliveries, the remaining cancellations were deliveries slated in 2010 and 2011.
Textron's first-quarter net income totaled $86 million, or 35 cents per share, amid lower demand for the company's large manufactured goods and smaller profits at its finance arm. That was down from $231 million, or 91 cents per share, in the same period last year. Textron reported earnings on Tuesday, a day earlier than Wall Street had expected. Revenue declined 24 percent to $2.53 billion.
Textron also slashed its 2009 profit and revenue outlook below its previous projections and Wall Street's expectations.
Textron shares fell 66 cents, or 6 percent, to $10.54 in afternoon trading.
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Associated Press Writer Roxana Hegeman contributed to this report from Wichita.
