Textron weighs options for off-road vehicles business, pauses production

Textron

18/12/2024 15:28

Dec 18 (Reuters) - Textron  TXT.N  is exploring
strategic alternatives for its Powersports product line due to
persistent weak demand, the Cessna jet maker said on Wednesday.
    The Powersports unit, which is part of the Textron
Specialized Vehicles business under the Industrial segment,
manufactures snowmobiles and recreational off-road vehicles, as
well as parts and accessories for those vehicles, under the
Arctic Cat brand.
    "TSV has begun to pause production of its powersports
products as management reviews strategic alternatives for the
business," Textron said in a filing.
    The Providence, Rhode Island-based company announced a
restructuring plan in November 2023 to reduce operating
expenses. 
    This plan includes, among other measures, reducing the
headcount at TSV, where the company anticipates that demand for
certain powersports products will remain low.
    As a result of the production pause and contract termination
costs, Textron now expects total pretax special charges from the
restructuring plan to range between $190 million and $205
million, up from the previously announced range of $165 million
to $170 million.
    The inventory valuation charge is expected to reduce
adjusted profit for 2024 by approximately 12 cents to 16 cents
per share. These charges will be recorded in the fourth quarter
of 2024.
    In October, Textron forecast full-year 2024 adjusted profit
to range between $1.40 and $1.49 per share.

 (Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Tasim
Zahid)
 ((Aatreyee.Dasgupta@thomsonreuters.com;))