Latitude's margins squeezed as unnamed rival hits pricing

摘要

A competitor's tactics have reduced profit margins for the Cessna Citation Latitude - even as demand is growing for Textron Aviation's latest business jet to enter service, says Scott Donnelly, chief executive of parent company Textron. The midsize twin received certification in June 2015 and has quickly become Textron Aviation's top seller, accounting for one-fifth of its 45 jet deliveries in the second quarter. The nine-seat Latitude's popularity has not correlated yet to rising profits for Textron Aviation, which saw operating margin decline by $8 million in the second quarter compared with the same period a year ago. "Launch pricing for the Latitude has been less than we'd hope for due to competitive dynamics in the segment of the market," Donnelly said in a 22 July second quarter earnings call with analysts.