PROVIDENCE, RI—Textron Inc., a leading aircraft and industrial parts manufacturer, announced today that it will pause production of its powersports products within the Industrial segment's Textron Specialized Vehicles (TSV) business. This decision comes as consumer demand for powersports products continues to soften. The company will complete limited production runs to meet existing customer commitments, with the pause becoming indefinite in the first half of 2025.
As part of its annual operating plan process and due to the production pause, Textron's management has approved additional actions under the company's 2023 restructuring plan. The pretax special charges related to the restructuring are now expected to increase from the previously estimated range of $165 million to $170 million to between $190 million and $205 million.
The additional charges of $25 million to $35 million are attributed to contract termination costs associated with halting powersports production. These charges will be recorded in the fourth quarter of 2024, with further cash outlays anticipated primarily in the first half of 2025. The restructuring plan is projected to be substantially completed within the same timeframe.
Moreover, Textron anticipates an inventory valuation charge ranging from $30 million to $40 million to write down its powersports-related inventory to net realizable value due to the indefinite pause in production. This charge is expected to decrease the company's Adjusted earnings per share for 2024 by approximately $0.12 to $0.16.
Textron Inc (NYSE:TXT)., formerly known as American Textron Inc., is headquartered in Providence, Rhode Island, and is incorporated in Delaware. The company's common stock is traded on the New York Stock Exchange under the ticker symbol NYSE:TXT.
This news is based on a recent statement from Textron Inc. filed with the U.S. Securities and Exchange Commission. The filing provides investors and the public with information about significant corporate events that could affect the value of the company's securities or influence investment decisions.
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