Textron Inc. reported a fourth quarter 2011 loss from continuing operations of $0.06 per share, compared to income of $0.20 per share in the fourth quarter of 2010. Last year's fourth quarter result included $0.13 per share in special charges.
 
This year's fourth quarter result included $0.55 in charges, consisting of a $0.41 per share mark-to-market adjustment at the Finance Segment to reflect the transfer to the held for sale classification of the remainder of the Golf Mortgage portfolio, a $0.14 per share loss associated with convertible note repurchases, $0.13 per share in the Textron Systems segment for intangible asset impairment and severance costs and a $0.13 per share gain related to the payment of a note receivable from the 2008 sale of the company's Fluid & Power business.
 
At the end of the fourth quarter, as part of its continuing strategy to orderly liquidate its non-captive finance business, the company transferred the remainder of its Golf Mortgage portfolio to held for sale status and recorded a pretax charge of $186 million to reflect the current fair value of these assets. Finance receivables ended the year at $2.9 billion, of which $950 million are non-captive.

Donnelly continued, "We also liquidated another $386 million from our finance receivables during the quarter. With the mark-to-market adjustment, we've reached a notable milestone with our liquidation strategy, ending the year with less than $1 billion in non-captive finance receivables."
 
Finance segment revenues decreased $15 million compared to the fourth quarter of 2010, primarily due to reduced earnings on lower finance receivables. Finance segment loss increased $175 million, primarily the result of the Golf Mortgage portfolio mark-to-market adjustment.
 
Since the end of the third quarter 2011, nonaccrual finance receivables decreased from $606 million to $321 million and sixty-day plus delinquencies decreased from $275 million to $166 million, both measures reflecting the impact of the transfer of the Golf Mortgage portfolio into the held for sale classification.
 
Finance receivables ended the quarter at $2.9 billion, down $652 million from the end of the third quarter 2011, reflecting liquidations of $386 million during the quarter, the $186 million mark-to-market adjustment and the transfer of $80 million of allowances for losses related to the classification of the Golf Mortgage portfolio to held for sale.

Cessna revenues increased $51 million, reflecting the delivery of 67 new Citation jets in the quarter, compared with 79 in last year's fourth quarter, more than offset by higher volumes of used jets, single engine aircraft and Caravans.

Segment profit increased $37 million primarily due to favorable performance, higher non-jet volume and a beneficial mix of jets.
 
Cessna backlog at the end of the fourth quarter was $1.9 billion, down $275 million from the end of the third quarter 2011.