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Textron (TXT) Declares Capacity Addition of Parts Distribution
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Textron Inc.’s (TXT - Free Report) business unit, Textron Aviation, recently announced the new capacity addition to its parts distribution business in Wichita, KS. The company strives to expand its operational capacity by adding 180,000 square feet of additional space to efficiently and timely meet the demand for parts from customers operating Textron’s Cessna, Beechcraft and Hawker aircraft.
Details of the Expansion
The company’s facility extension is intended at the company’s headquarters in Wichita, KS. The project expansion is scheduled to begin by the end of October 2022 and is likely to be completed by the end of 2023.
The expansion will include a room for warehouse space, an extension of the existing mezzanine structure for parts storage and offices and an added room for customer support.
Moreover, the project boasts additional features, including energy-saving LED lighting, coupled with enhanced systems and a process that will consolidate shipments and cut vehicle travel by nearly 40,000 miles annually.
Benefits of the Expansion
Textron’s strategic plan to boost its parts production capacity will provide immense support for keeping sufficient inventory levels of product parts. This will allow the company to meet the customer demand for essential parts required to operate aircraft.
The expansion will entail proper parts availability and supply for its customers. This will ensure the smooth and continuous operation of aircraft by customers.
Moreover, with the additional capacity, Textron can bolster its capacity to make consolidated shipments for its customers while supporting the smooth operation of its service center in Wichita.
Such a capacity expansion will not only boost the company’s footprint but also allow it to effectively expand in the distribution operation and increase its customer base. This should provide value enhancement to its Textron Aviation business unit, bolstering the company’s overall revenue generation prospects.
Growth Prospects
The market for global aircraft manufacturing is projected to register a CAGR of more than 3.7% during the 2022-2030 period, per the report from Polaris Market Research. Considering the abounding growth prospects offered by the aforementioned market, the recent capacity expansion by Textron is likely to benefit this defense prime.
Other aerospace majors that are a forerunner in the business and can avail of the perks of the expanding market size are as follows:
Boeing (BA - Free Report) is a leading global aerospace company. It develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries.
The long-term earnings growth rate of Boeing is pegged at 4%. The Zacks Consensus Estimate for BA’s 2022 earnings indicates a growth rate of 78.3% from the prior-year reported figure.
Airbus (EADSY - Free Report) is a leader in designing, manufacturing and delivering aerospace products, services and solutions to customers worldwide. As the largest aeronautics and space company in Europe and a worldwide leader, Airbus is at the forefront of the aviation industry.
Airbus has a long-term earnings growth rate of 12.4%. Shares of EADSY have appreciated 4.3% in the past month.
Embraer (ERJ - Free Report) is one of the largest commercial aircraft companies. It designs, manufactures and sells aircraft and aviation-related structural parts to the world’s commercial aviation, executive aviation and defense markets.
Embraer boasts a long-term earnings growth rate of 17%. ERJ shares have risen 1.8% in the past three months.
Price Movement
In the past year, shares of Textron have declined 18.4% compared with the industry’s decline of 23.9%.
Image: Bigstock
Textron (TXT) Declares Capacity Addition of Parts Distribution
Textron Inc.’s (TXT - Free Report) business unit, Textron Aviation, recently announced the new capacity addition to its parts distribution business in Wichita, KS. The company strives to expand its operational capacity by adding 180,000 square feet of additional space to efficiently and timely meet the demand for parts from customers operating Textron’s Cessna, Beechcraft and Hawker aircraft.
Details of the Expansion
The company’s facility extension is intended at the company’s headquarters in Wichita, KS. The project expansion is scheduled to begin by the end of October 2022 and is likely to be completed by the end of 2023.
The expansion will include a room for warehouse space, an extension of the existing mezzanine structure for parts storage and offices and an added room for customer support.
Moreover, the project boasts additional features, including energy-saving LED lighting, coupled with enhanced systems and a process that will consolidate shipments and cut vehicle travel by nearly 40,000 miles annually.
Benefits of the Expansion
Textron’s strategic plan to boost its parts production capacity will provide immense support for keeping sufficient inventory levels of product parts. This will allow the company to meet the customer demand for essential parts required to operate aircraft.
The expansion will entail proper parts availability and supply for its customers. This will ensure the smooth and continuous operation of aircraft by customers.
Moreover, with the additional capacity, Textron can bolster its capacity to make consolidated shipments for its customers while supporting the smooth operation of its service center in Wichita.
Such a capacity expansion will not only boost the company’s footprint but also allow it to effectively expand in the distribution operation and increase its customer base. This should provide value enhancement to its Textron Aviation business unit, bolstering the company’s overall revenue generation prospects.
Growth Prospects
The market for global aircraft manufacturing is projected to register a CAGR of more than 3.7% during the 2022-2030 period, per the report from Polaris Market Research. Considering the abounding growth prospects offered by the aforementioned market, the recent capacity expansion by Textron is likely to benefit this defense prime.
Other aerospace majors that are a forerunner in the business and can avail of the perks of the expanding market size are as follows:
Boeing (BA - Free Report) is a leading global aerospace company. It develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries.
The long-term earnings growth rate of Boeing is pegged at 4%. The Zacks Consensus Estimate for BA’s 2022 earnings indicates a growth rate of 78.3% from the prior-year reported figure.
Airbus (EADSY - Free Report) is a leader in designing, manufacturing and delivering aerospace products, services and solutions to customers worldwide. As the largest aeronautics and space company in Europe and a worldwide leader, Airbus is at the forefront of the aviation industry.
Airbus has a long-term earnings growth rate of 12.4%. Shares of EADSY have appreciated 4.3% in the past month.
Embraer (ERJ - Free Report) is one of the largest commercial aircraft companies. It designs, manufactures and sells aircraft and aviation-related structural parts to the world’s commercial aviation, executive aviation and defense markets.
Embraer boasts a long-term earnings growth rate of 17%. ERJ shares have risen 1.8% in the past three months.
Price Movement
In the past year, shares of Textron have declined 18.4% compared with the industry’s decline of 23.9%.
Image Source: Zacks Investment Research
Zacks Rank
Textron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.