Diversified U.S. manufacturer Textron Inc. reported a quarterly loss after taking a hefty charge to write down the value of loans on golf courses – a hangover from the financial crisis.
The world’s largest maker of corporate aircraft posted a fourth-quarter net loss of $19 million, or 7 cents per share, compared with year-earlier income of $60 million, or 19 cents per share.
The loss included 55 cents per share in charges for golf course mortgages – one of the areas the company’s financial unit had expanded into before the credit crunch of 2008 – and for the repurchase of debt.
The company, which also makes Bell helicopters and E-Z-Go golf carts, forecast 2012 earnings from continuing operations of $1.80 to $2.00 per share, up from $1.31 in 2011.
For Augusta-based E-Z-Go, which is part of the company’s industrial sector, those sector revenues increased $70 million, primarily because of higher overall volumes. Segment profit increased $24 million reflecting improved performance and the higher volume.
Chief Executive Officer Scott Donnelly has been fighting to turn Textron around, cutting costs at its Cessna aircraft arm and dramatically scaling back its finance unit to focus purely on helping customers to pay for products made by the Providence, R.I.-based company.
Over the past year, Textron shares have fallen about 18 percent, while the broad Standard & Poor’s 500 index rose 2.5 percent.