PROVIDENCE, R.I. (AP) -- Diversified manufacturer Textron Inc. said Tuesday it is cutting production at its Cessna and industrial business units and reiterating its 2009 cash outlook.
Textron said it expects to end the first quarter with more than $1 billion in cash. It anticipates cutting at least an $800 million in finance receivables by the end of the first quarter -- well ahead of plan, the company said.
Also, the sale of HR Textron, which supplies motion-control systems, to Woodward Governor, an energy-control company based in Fort Collins, Colo., is set to close on Thursday, which will generate about $265 million in after-tax cash.
Most of the company's commercial markets "continue to soften in the current economic environment, and credit markets at Textron Financial Corp. remain challenging," the company said in a statement.
"Despite the tough environment, the company's plan to generate cash from the combination of manufacturing operations and the collection of finance receivables at (Textron Finance Corp.) is on track," Chief Executive Lewis B. Campbell said.
Textron will updates its full-year outlook when it releases first-quarter results on April 29.
In morning trading, Textron's shares rose 43 cents, or 7.8 percent, to $5.96. In the past 52 weeks, the stock has traded between $3.57 and $66.52.