April 20, 2011 / 11:03 AM / in 6 years

UPDATE 2-Textron profit falls short on Cessna weakness

* EPS from cont ops of $0.10 v. Wall St's $0.17 view

* Revenue up 12.2 pct

* Holds full-year EPS view steady at $1-$1.15 (Adds revenue, forecast, quote, background)

BOSTON, April 20 (Reuters) - Textron Inc's (TXT.N) first-quarter earnings missed analysts' expectations, as weak demand for corporate jets caused the diversified U.S. manufacturer's Cessna division to post a loss in the quarter.

The world's biggest maker of business aircraft said profit came to $29 million, or 9 cents per share, compared with a net loss of $8 million, or 3 cents per share, a year earlier.

Factoring out one-time items, profit came to 10 cents per share. Analysts, on average, had forecast profit of 17 cents per share excluding one-time items, according to Thomson Reuters I/B/E/S.

Revenue rose 12.2 percent to $2.48 billion, from $2.21 billion, a year earlier. Analysts, on average, had looked for $2.51 billion.

"At Cessna, low production and delivery levels led to an operating loss in the quarter," said Scott Donnelly, the Providence, Rhode Island-based company's chief executive. "Looking forward, we expect improved profitability as volumes recover."

Textron held steady its full-year profit forecast, first issued in January, which calls for earnings from continuing operations of $1 to $1.15 per share.

Over the past year, shares of the Providence, Rhode Island-based company, which also makes Bell helicopters and EZ-Go golf carts, have risen almost 18 percent, outpacing the roughly 9 percent rise of the Standard & Poor's 500 index .SPX.

The company's rivals include the Gulfstream unit of General Dynamics Corp (GD.N) and Canada's Bombardier Inc (BBDb.TO) in corporate jets, and United Technologies Corp (UTX.N) in helicopters. (Reporting by Scott Malone; Editing by Derek Caney)

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