Projo Biz Blog

Providence-based Textron Inc., the world's biggest maker of business jets through its Cessna unit, this morning reported an 18 percent increase in first-quarter earnings as demand rose for aircraft.

Net income climbed to $231 million, or 91 cents a share, from $196 million, or 77 cents, a year earlier, beating analysts' estimates. Sales increased 19 percent to $3.52 billion, the company said.

Chief Executive Officer Lewis Campbell in January predicted “another banner year” for business jets, with 570 orders expected even amid a weaker U.S. economy. Textron today changed its 2008 earnings forecast to between $3.80 and $4 a share, a 5 cent increase from a January projection.

“Cessna continues to fire on all cylinders while expanding offerings,” as Bell has refocused its efforts on its military programs and the industrial unit is rolling out new products, Credit Suisse analyst Nicole Parent wrote in a March 31 note. She has an “outperform” rating on the stock.

Shares in textron (TXT:NYSE) closed Wednesday at $62.17 a share, up $2.37.

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