Textron reported third-quarter finance segment revenues of $32 million, down from $59 million for the same quarter in 2010 primarily due to reduced earnings on lower finance receivables.

Finance segment losses for the third quarter and first nine months were $24 million and $101 million, respectively compared to losses of $51 million and $180 million for the same 2010 periods. Textron said that losses were lower primarily due to lower loan loss provision and lower operating expenses, partially offset by lower interest margin on the reduced portfolio of finance receivables.

Since the end of the second quarter 2011, nonaccrual finance receivables decreased from $696 million to $606 million and sixty-day plus delinquencies decreased from $302 million to $275 million. Charge-offs in the third quarter were $26 million compared to $38 million in the second quarter of 2011.

Finance receivables ended the quarter at $3.5 billion, down $277 million from the end of the second quarter 2011.

Cessna Results

Textron said Cessna revenues increased $236 million, reflecting higher jet volume. Cessna delivered 47 new Citation jets in the quarter, compared with 26 deliveries in last year’s third quarter. Segment profit increased $64 million primarily due to higher volume, mix and favorable performance.

Cessna backlog at the end of the third quarter was $2.2 billion, down $359 million from the end of the second quarter 2011.

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