$HP has an average of 118 rigs under term contracts to be active in FY16, 93 in FY17 and 52 in FY18. Due to soft market conditions and early termination of long-term contracts, backlog decreased from about $3.5Bil as of June 30, 2015 to about $3.1Bil as of September 30, 2015. $HP expects total annual depreciation expense in FY16 to be about $580MM.
Construction equipment supplier $URI reported that in U.S., the employment report for September was encouraging. Geographically, the company is experiencing growth in the east and west coast regions. $URI added that in Canada, the economy is challenging. Rental revenue from Canada was down approx. 10% in 3Q16.
$TXT's Industrial revenue for 3Q16 rose by $58MM from last year, due to the impact of acquired businesses and higher volumes. Segment profit rose by $5MM reflecting improved performance. Finance segment revenues increased $3MM and profit declined $3MM.
$TXT's revenue at Textron Systems for 3Q16 declined by $7MM YoverY, primarily due to lower weapons volume partially offset by higher revenues at Marine and Land. Segment profit rose by $5MM, reflecting improved performance. Backlog in the segment at the end of 3Q16 was $2.2Bil, down $74MM from last quarter.
$TXT's revenue at Bell for 3Q16 fell by $22MM YoverY, primarily due to lower commercial deliveries partially offset by higher military volumes. Segment profit declined by $2MM, reflecting the lower commercial aircraft deliveries. Backlog in this segment was $4.9Bil at the end of 3Q16, about flat with last quarter.
$TXT's revenue at Textron Aviation for 3Q16 rose by $39MM from last year, primarily due to higher pre-owned aircraft volumes and the impact of an acquisition. Segment profit fell to $100MM from $107MM a year ago, primarily reflecting the mix of products sold. Backlog in this segment ended 3Q16 at $1.1Bil.
$TXT announced additional headcount reductions across its businesses principally through voluntary separation plan in its aviation segment and has increased its cost estimate accordingly. Several of the company's end markets remain challenging in 3Q16, $TXT still achieves top line growth while furthering development efforts on major new programs.