(Reuters) - Cessna jet maker Textron (NYSE:TXT) lowered its annual profit forecast on Thursday, citing impact of the four-week strike by 5,000 workers at its Wichita plant.
The company now expects its 2024 adjusted profit per share to be between $5.40 and $5.60, down from its previous forecast of $6.20 to $6.40.
"The labor disruption adversely impacted our third-quarter results and we expect it to negatively affect fourth-quarter financials," CEO Scott Donnelly said.
The strike, which began on Sept. 23, ended last week with the ratification of a new contract that offered the workers a 31% pay hike over five years and a $3,000 lump sum payment each year, along with other benefits.
The Providence, Rhode Island-based company also missed Wall Street estimates for third-quarter profit and revenue on Thursday as disruptions caused by the strike hurt sales at its aviation segment.
Aircraft manufacturers have also been grappling with delivery delays and taking a hit to their margins due to the persisting supply chain issues in the market.
Peer General Dynamics (NYSE:GD) lowered its annual G700 business jet delivery targets earlier this week amid these challenges.
Textron posted an adjusted profit of $1.40 per share for third quarter, missing analysts' average estimate of $1.49, according to data compiled by LSEG.
The company's revenue for the three months ended Sept. 28 came in at $3.43 billion, below estimates of $3.51 billion.
Textron on Wednesday named insider David Rosenberg as its new chief financial officer. Rosenberg will be succeeding company veteran Frank Connor, who plans to retire in 2025.