Textron Inc.

And ladies and gentlemen, thank you for standing by for Textron third quarter 2021 earnings conference call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. If you wish to ask a question, please press 1 then 0 on your telephone keypad. You may withdraw your question at any time by repeating the 1 then 0 command. Once again, if you have a question, please press 1 and then 0. As a reminder, today's conference is being recorded. If you should require assistance during the call, please press star then zero. I would now like to turn the conference over to your host, Mr. Eric Salander, Vice President of Investor Relations.

Please go ahead. Thanks, Brad, and good morning, everyone. Before we begin, I'd like to mention we will be discussing future estimates and expectations during our call today. These forward-looking statements are subject to various risk factors, which are detailed in our SEC filings and also in today's press release. On the call today, we have Scott Donnelly, Textron's Chairman and CEO, and and Frank Connor, our Chief Financial Officer. Our earnings call presentation can be found in the investor relations section of our website. Revenues in the quarter were $3 billion, up from $2.7 billion in last year's third quarter. During this year's third quarter, we reported income from continuing operations of $0.82 per share. Adjusted income from continuing operations, a non-GAAP measure, was $0.85 per share for the third quarter of 2021, compared to $0.53 per share in the third quarter of 2020. Segment profit in the quarter was $279 million, up $90 million from the third quarter of 2020. Manufacturing cash flow before pension contributions totaled $271 million in the quarter and $851 million year-to-date. With that, I'll turn the call over to Scott.

Thanks, Eric, and good morning, everyone. We continue to execute well across the company in the quarter. At aviation, we continue to see a solid recovery in the general aviation market, with strong commercial demand, increased deliveries in Citation jets and commercial turboprops, and higher aftermarket volume. We delivered 49 jets, up from 25 last year, and 35 commercial turboprops, up from 21 in last year's third quarter. Order activity in the quarter remained very strong, resulting in backlog growth of $721 million, bringing us to $3.5 billion at the quarter end. Also in the third quarter, the Beechcraft King Air 360 and 260 achieved EASA certification and began to deliver customers throughout the region. Continuing with our product strategy of upgrading existing models, at MBAA we recently announced the Citation M2 Gen 2 and the XLS Gen 2 product upgrades. Also on the new product front, the Sussex Sky Courier is continuing to progress through certification with over 1,600 hours of flight test activity, and the Beechcraft Denali successfully completed its initial ground engine runs powered by GE's new catalyst engine. At Bell, revenues were down 3% in the quarter, largely on lower military revenues. On the commercial side of Bell, we delivered 33 helicopters, down 41 in last year's third quarter. Moving to future vertical lift, in September, Bell submitted its proposal for the FARA program. A down-selected award is expected in the second quarter of 2022. On FARA, Bell is about 60% of the way through its build of the 360 Invictus prototype and remains on schedule. Also in the quarter, Bell inducted the first U.S. Air Force CV-22 for its nacelle improvement modifications. Moving to systems, we saw another strong quarter of execution with operating margins at 15.1%, up 190 basis points from last year's third quarter. ATAC continued to expand its fleet of certified F-1 aircraft with two additional aircraft entering service in the quarter, bringing the total fleet to 19 aircraft at the end of the quarter. The fleet continued to support higher customer demand for adversary air services, driving higher revenues in the quarter. At Air Systems, the team booked $25 million in new orders in the quarter, including both fee-for-service activities as well as new hardware. Moving to industrial, overall revenues were lower in the quarter as we continued to experience manufacturing disruptions related to supply chain challenges. At Caltechs, we again saw order disruptions related to the global auto OEM supply chain shortages, which have directly impacted production scheduling, resulting in intermittent line shutdowns and manufacturing inefficiencies. Specialized vehicles, we saw continued strong demand in our end markets with higher pricing, which offset production disruptions from part shortages. To wrap up, Textron delivered a solid quarter with increased aviation backlog, improved manufacturing margins, and continued strong cash generation while working to minimize the impact of supply chain disruptions. With that, I'll turn the call over to Frank.