Textron Lowers Profit Forecast After Strike

Textron has revised its 2024 profit forecast downward from $6.20-$6.40 per share to $5.40-$5.60 following a four-week strike by 5,000 workers at its Wichita facility, which ended with a new contract granting a 31% pay increase and annual bonuses. The strike adversely affected Textron's third-quarter earnings, resulting in adjusted profits of $1.40 per share, which missed analyst expectations of $1.49, and revenue of $3.43 billion, below the predicted $3.51 billion. CEO Scott Donnelly acknowledged the labor disruption's negative impact on both quarterly results and future financials. The company also noted that ongoing supply chain issues are affecting the broader aerospace industry, leading peers like General Dynamics to revise their delivery targets. Investors are left pondering the implications for Textron's stock as it has underperformed relative to the S&P 500 this year. Additionally, Textron has appointed David Rosenberg as its new chief financial officer, succeeding Frank Connor, who plans to retire in 2025.