(Reuters) – Cessna jet maker Textron lowered its annual profit forecast on Thursday, citing impact of the four-week strike by 5,000 workers at its Wichita plant.
The company now expects its 2024 adjusted profit per share to be between $5.40 and $5.60, down from its previous forecast of $6.20 to $6.40.
“The labor disruption adversely impacted our third-quarter results and we expect it to negatively affect fourth-quarter financials,” CEO Scott Donnelly said.
The strike, which began on Sept. 23, ended last week with the ratification of a new contract that offered the workers a 31% pay hike over five years and a $3,000 lump sum payment each year, along with other benefits.
The Providence, Rhode Island-based company also missed Wall Street estimates for third-quarter profit and revenue on Thursday as disruptions caused by the strike hurt sales at its aviation segment.
Aircraft manufacturers have also been grappling with delivery delays and taking a hit to their margins due to the persisting supply chain issues in the market.
Peer General Dynamics lowered its annual G700 business jet delivery targets earlier this week amid these challenges.
Textron posted an adjusted profit of $1.40 per share for third quarter, missing analysts’ average estimate of $1.49, according to data compiled by LSEG.
The company’s revenue for the three months ended Sept. 28 came in at $3.43 billion, below estimates of $3.51 billion.
Textron on Wednesday named insider David Rosenberg as its new chief financial officer. Rosenberg will be succeeding company veteran Frank Connor, who plans to retire in 2025.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shreya Biswas)
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