A four-week strike by machinists at Textron Aviation has taken a significant toll on the company’s third-quarter financial performance. The labor action, which began on September 23rd and concluded on October 20th, resulted in delayed aircraft deliveries and reduced production output.
The strike cost Textron Aviation an estimated $30 million in lost profits, leading parent company Textron to adjust its 2024 financial forecast. Despite the challenges, the company managed to maintain relatively stable revenue, primarily due to increased pricing.
While the strike impacted production across the board, it was particularly evident in the commercial turboprop segment. Textron Aviation delivered 25 turboprops in the third quarter, a significant decrease from the 38 delivered in the same period last year.
As the company works to recover from the strike, it is facing the challenge of ramping up production to meet demand. The lingering effects of the work stoppage are expected to impact the company’s fourth-quarter financial performance. Textron has revised its 2024 revenue forecast for its aviation business to $5.5 billion, down from the previous estimate of $6 billion.
