Textron expects to meet or beat earlier forecast

By Chelsea Emery

NEW YORK (Reuters) - Diversified manufacturer Textron Inc (TXT.N: Quote, Profile, Research) said on Friday that it expected earnings to meet or exceed its earlier forecast, giving support to its shares when conglomerate General Electric Co's (GE.N: Quote, Profile, Research) disappointing outlook slammed Wall Street sentiment.

Declining to give specific details, the maker of Cessna corporate jets, Bell helicopters and EZ-GO golf carts said strength in its nonfinancial units had helped offset weaker-than-expected earnings for its Textron Financial segment.

"Coming into the year, we (said) that we expected some headwinds around loss provision and relative borrowing costs," said Textron spokesman Doug Wilburne. "That has, in fact, come to fruition."

But he said the company saw no evidence of a slowdown in business jet demand.

Textron said it expected first-quarter earnings to beat its previous forecast range of 75 cents to 85 cents per share. Analysts on average were expecting 84 cents, according to Reuters Estimates.

For the full year, the company said it expected profit to meet or exceed its earlier forecast of $3.75 to $3.95 per share. Wall Street was expecting $3.93.

Textron shares were up 2 cents at $57.42 in morning New York Stock Exchange trade after rising as much as 2.6 percent to $58.90.

GE, however, was down $4.06, or 11 percent, at $32.67 after the industrial conglomerate cut its 2008 earnings forecast.