Textron shares fall on Cessna production cut

Textron shares slid $1.71, or 9.2 percent, to close at $16.93. The stock has ranged from $10.09 to $74.40 over the past year.

On Tuesday, Textron said it expects 2009 deliveries of its Citation jets to rise slightly from the 475 it expects to deliver for 2008. But it said 2009 deliveries will be less than the 535 it had originally planned.

"Orders are slowing for jets and pistons, daily aircraft utilization across the global fleet is declining, and used aircraft inventories are rising, all indicating that the global economic and financial crisis is impacting our customers," Cessna CEO Jack Pelton wrote in an e-mail to employees.

Cowen and Co. analyst Cai von Rumohr wrote in a note to clients that the cut suggests Textron will have a tough 2009 and possibly 2010. "Barring an unlikely bounce in the economy, we'd look for a further delivery drop in 2010" even if the new Citation CJ4 ships as planned, according to the analyst.

"Cessna's delivery plan cut should not come as a shock given deteriorating global economies," von Rumohr wrote.