Textron, the Cessna jet manufacturer, said that it is looking at strategic alternatives to its Powersports line of products due to persistently low demand.

Under the Arctic Cat brand, the Powersports division, part of Textron Specialized Vehicles' Industrial segment, produces snowmobiles, off-road recreational vehicles and parts and accessories.

Textron filed a statement saying that "TSV is halting production of its powersports product line as the management evaluates strategic alternatives for their business."

In November 2023, the Providence, Rhode Island based company announced that it would be restructuring its operations to cut operating costs.

The plan also includes reducing headcounts at TSV where it is anticipated that the demand for certain products in the powersports sector will remain low.

Textron expects the total special charges pretax from the restructuring plan will range between $190 and $205 millions, an increase from the previously stated range of $165 to $170 million.

This charge will reduce the adjusted profit in 2024 by 12 to 16 cents per share. These charges will appear in the fourth quarter 2024.

Textron's October forecast for 2024 full-year adjusted profit ranged between $5.40 to $5.60 a share. Reporting by Aatreyee dasgupta, Bengaluru. Editing by Tasimzahid

(source: Reuters)