Textron (NYSE: TXT) is a conglomerate that includes Bell Helicopter, E-Z-GO, Cessna Aircraft Company, and Greenlee, among others. It was founded by Royal Little in 1923 as the Special Yarns Company, and is headquartered at the Textron Tower in Providence, Rhode Island, United States.
With total revenues of $14.2 billion, and approximately 37,000 employees in 29 countries, Textron is currently ranked 220 on the Fortune 500 list of largest companies for 2010.
Textron Inc. has made so many changes in its corporate identity that any characterization of it is subject to revision on rather short notice. It has, however, consistently earned a profit for its stockholders. For that reason, many investors may not care what it does so long as it keeps generating a profit for them. Textron, involved in many industries, has limited its areas of investment since the 1970s. Through its Bell Helicopter and Cessna subsidiaries, Textron remains an important United States aerospace manufacturer.
Textron Inc. is a multi-industry company with a global network of aircraft, defense, industrial and finance businesses to provide customers with products and services worldwide. The Company conducts its business through five operating segments: Cessna, Bell, Textron Systems and Industrial, which represents its manufacturing businesses, and Finance, which represents its finance business. Cessna has five major lines of business: Citation business jets, Caravan single-engine utility turboprops, Cessna single-engine piston aircraft, aftermarket services and lift solutions by CitationAir. Textron Systems provides products to the defense, aerospace and general aviation markets. The Industrial segment includes its Kautex, Greenlee, E-Z-GO and Jacobsen businesses. Its Finance segment consists of Textron Financial Corporation (TFC) and its subsidiaries. In April 2009, the Company completed the sale of HR Textron, an operating unit within its Textron Systems segment, to Woodward Governor Company. In June 2010, the Company acquired MillenWorks.
Cessna Segment
Cessna Aircraft Company is a manufacturer of general aviation aircraft. Revenues in the Cessna segment accounted for approximately 32% of its total revenue during the fiscal year ended January 2, 2010 (fiscal 2009). The family of business jets produced by Cessna includes the Mustang, Citation CJ1+, Citation CJ2+, Citation CJ3, Citation CJ4, Citation Encore+, Citation XLS+, Citation Sovereign and Citation X. The Cessna Caravan is a utility turboprop. Caravans are offered in four models: the Grand Caravan, the Super Cargomaster, the Caravan 675 and the Caravan Amphibian. Caravans are used in the United States primarily for overnight express package shipments and for personal transportation. International uses of Caravans include humanitarian flights, tourism and freight transport. Cessna offers nine models in its single engine piston product line, which include the four-place Skyhawk, Skyhawk SP, Skylane, Turbo Skylane, 350 Corvalis and 400 Corvalis TT, the six-place Stationair and Turbo Stationair and the two-place SkyCatcher.
The Citation family of aircraft is supported by nine Citation Service Centers owned or operated by Cessna, along with authorized independent service stations and centers located in more than 22 countries throughout the world. Cessna-owned Service Centers provide customers with around-the-clock service and maintenance. Cessna also provides around-the-clock parts support for Citation aircraft. Cessna Caravan and single engine piston customers receive product support through independently owned service stations and around-the-clock parts support through Cessna.
Cessna markets its products worldwide through its own sales force, as well as through a network of authorized independent sales representatives, depending upon the product line. Cessna’s private jet business called CitationAir (formerly, CitationShares) offers a spectrum of private aviation solutions, including Jet Cards, Jet Shares, Jet Management and Corporate Solutions. The CitationAir fleet operates throughout the contiguous United States and in Canada, Mexico, Central America, the Caribbean and Bermuda.
Bell Segment
Bell Helicopter is a supplier of helicopters, tiltrotor aircraft, and related spare parts and services. Bell manufactures for both military and commercial applications. Revenues for Bell accounted for approximately 27% of its total revenues in fiscal 2009. Bell supplies advanced military helicopters and support to the United States Government and to military customers outside the United States. Bell is a primary supplier of helicopters to the United States Government and, in association with The Boeing Company, is a supplier of military tiltrotor aircraft. Bell’s major United States Government programs are the V-22 tiltrotor aircraft and the H-1 helicopters.
Bell is teamed with The Boeing Company to develop, produce and support the V-22 Osprey tiltrotor aircraft for the United States Department of Defense. Tiltrotor aircraft are designed to provide the benefits of both helicopters and fixed-wing aircraft. The United States Government has issued contracts for 286 production V-22 aircraft through production Lot 16, of which 116 have been delivered as of fiscal 2009. The United States. Marine Corps H-1 helicopter program includes a utility model and an advanced attack model, the UH-1Y and the AH-1Z, respectively, both of which were designed to have 84% parts commonality between them. Through production Lot 6, the United States Government has contracted for the production of 52 UH-1Y aircraft and 17 AH-1Z aircraft. It has delivered a combined total of 31 of these aircraft as of fiscal 2009.
Bell also is a supplier of commercially certified helicopters and support to corporate, offshore petroleum exploration and development, utility, charter, police, fire, rescue and emergency medical helicopter operators. Bell produces a variety of commercial aircraft types, including light single- and twin-engine helicopters and medium twin-engine helicopters, along with other related products. The commercial helicopters offered by Bell include the 206, 407, 412 and 429. Bell’s Customer Support and Service division provides post-sale service and support for its installed base of approximately 13,000 helicopters through a network of five Bell-owned service centers, more than 125 independent service centers and six supply centers that are located worldwide. Collectively, these service centers offer a complete range of logistics support, including parts, support equipment, technical data, training devices, pilot and maintenance training, component repair and overhaul, engine repair and overhaul, aircraft modifications, aircraft customizing, accessory manufacturing, contractor maintenance, field service and product support engineering.
Textron Systems Segment
Textron Systems is a primary supplier to the defense, aerospace and general aviation markets, providing approximately 18% of Textron’s revenues in fiscal 2009. This segment’s principal focus is to address the United States Department of Defense’s needs for force protection; situational awareness, including Intelligence, Surveillance, Reconnaissance (ISR); precision weapons, and related services and support. While this segment sells most of its products to United States customers, it also sells products to customers outside the United States through foreign military sales sponsored by the United States government and directly through commercial sales channels. The Textron Systems segment is comprised of five operating units: AAI, Textron Marine & Land Systems (TMLS), Textron Defense Systems, Lycoming and Overwatch.
AAI is the prime system integrator for the United States Army’s premier tactical Unmanned Aircraft System (UAS), the Shadow, which includes the One System Ground Control Station. TMLS is engaged in the design, production and support of advanced marine craft, armored combat vehicles, turrets and related subsystems. Textron Defense Systems is the United States Air Force’s prime contractor for the Sensor Fuzed Weapon, the United States. Lycoming Engines specializes in the engineering, manufacture, service and support of piston aircraft engines. Overwatch provides a multi-source intelligence and geospatial analysis solution.
Industrial Segment
Kautex is a developer and manufacturer of blow-molded fuel systems for cars, light trucks, all-terrain vehicles and windshield and headlamp washer systems, as well as selective catalytic reduction systems used to reduce emissions from diesel engines. Kautex serves the automobile market worldwide, with operating facilities near its major customers around the world. In addition to fuel systems and washer systems, in North America, Kautex produces engine camshafts for the automobile market. From facilities in Germany and Poland, Kautex develops and produces bottles and plastic containers for food, household, laboratory and industrial uses. Revenues of Kautex accounted for approximately 12% of its total revenues in fiscal 2009.
Greenlee designs and manufactures powered equipment, electrical test and measurement instruments, hand and hydraulic powered tools, and electrical and fiber optic assemblies under the Greenlee, Fairmont, Klauke, Paladin Tools, Progressive and Tempo brand names. The products principally are used in the electrical construction and maintenance, telecommunications, data communications, wiring and plumbing industries. E-Z-GO designs, manufactures and sells golf cars and off-road utility vehicles powered by electric and internal combustion engines under the E-Z-GO name, as well as multipurpose utility vehicles under the E-Z-GO and Cushman brand names. Jacobsen designs and manufactures professional turf-maintenance equipment as well as specialized turf-care vehicles. Brand names include Ransomes, Jacobsen and Cushman. Jacobsen’s customers include golf courses, resort communities, sporting venues and municipalities. Products are sold through a network of distributors and dealers.
Finance Segment
The Company’s Finance segment consists of Textron Financial Corporation (TFC), its subsidiaries and the securitization trusts consolidated into it, along with two other finance subsidiaries owned by Textron Inc. Its Finance segment is a diversified commercial finance business. Its Finance segment’s services are offered primarily in North America; however, purchases of certain Textron products, principally Bell helicopters and Cessna aircraft, are financed worldwide.
By the late 1980s, the hounds of peace could be heard over the Steppes. The end of the Cold War hurt defense company stocks, and as one analyst explained in Forbes, conglomerates generally suffered according to their lowest common denominator. At the time, Textron's 32 operating companies made up three groups: aerospace, commercial products, and financial services. In the last category, the company's Paul Revere Insurance helped lift Textron's balance sheet. Still, aerospace, with 1988 sales of $3.6 billion, remained the largest division (the other two had sales of less than $2 billion each).
Textron had high hopes in the $25 billion V-22 tilt-rotor aircraft program. Developed by Bell and Boeing for the U.S. Marine Corps, the fusion of helicopter and fixed-wing aircraft was expensive to fly. Faced with few possible users in the United States, the company resorted to asking Japan and West Germany for funding for a civilian variant. Fortunately, the market for civilian helicopters was up, and Avco Corp., now the Aerostructures division, had entered the booming airliner market, making wings for Airbus. Textron's automotive businesses also were generally lucrative.
One strategic priority was regaining an overseas presence, lost with the sale of Ex-Cell-O Corp.'s machine tool businesses in the mid-1980s. In 1989, however, U.S. regulators blocked Textron's $250 million purchase of Avdel, a British manufacturer of industrial fasteners. Textron was able to make progress through a manufacturing venture in The Netherlands with Ford and a helicopter distribution arrangement in Japan (Mitsui). Textron had revenues of $7.4 billion in 1989.
Textron acquired Cessna Aircraft from General Dynamics for $605 million in early 1992. The company had made 6,500 small planes a year in its heyday, but this business had been crippled by an industrywide wave of airplane crash lawsuits. When Textron bought it, Cessna was devoted to manufacturing its popular line of Citation business jets. Legislation in 1994 to limit manufacturers' liability on planes more than 18 years old, however, made making single-engined, propeller-driven aircraft feasible again, and the company resumed production on the small trainers that made it famous. Cessna's revenues were $783 million in 1993.
Revenues reached $8.3 billion in 1992. Aerospace contributed more than a third of the company's profits, in spite of the reliance on military contracts. The financial segment accounted for 43 percent of income; commercial, 20 percent. James F. Hardymon became CEO in 1992 after joining Textron as president and chief operating officer three years earlier. (He had previously held those two positions at Emerson Electric.)
Textron bought Acustar, Chrysler's plastics operations, for $139 million in 1993. The same year, it sold the public a 16.7 percent stake in Paul Revere Insurance, the star of Textron's financial services portfolio. The unit suffered heavy disability claims in 1994, which led Hardymon to consider selling the remainder of the company. Homelite, a maker of lawn care equipment, was divested in 1994, as was piston aircraft engine manufacturer Lycoming. These sales took in $495 million. After several years, Textron finally was able to gain control of Avdel. In the mid-1990s, the fastener and automotive businesses were merged into Textron Fastening Systems and Textron Automotive Company, respectively. In late 1994, Bell did win a $2.5 billion contract to make just six V-22 aircraft for the U.S. military, although a V-22 crash soured the Pentagon on a full-scale production contract.
Hardymon retired in July 1998, succeeded by Lewis B. Campbell. Like his predecessor, Campbell had grown up in the rural South and studied engineering before working in sales, marketing, and management positions. Campbell formed his career at GM, rather than Emerson Electric, like Hardymon. He joined Textron in 1992 and became president and chief operating officer within two years. Campbell also became board chairman in February 1999.
By the late 1990s, more than 30 percent of Textron's revenues came from abroad. The company posted record results in 1999 as revenues increased 20 percent. Textron acquired 18 business and entered two joint ventures while selling Avco Financial Services for $2.9 billion. A fatal crash of a Marine V-22 Osprey in April 2000, however, raised doubts about the viability of the program.
Principal Subsidiaries: Bell Helicopter Textron; Cessna Aircraft Company; Textron Automotive Company; Textron Fastening Systems; Textron Industrial Products; Textron Turf Care and Specialty Products.
Principal Divisions: Aircraft; Automotive; Industrial; Finance.
Principal Competitors: General Electric Corporation; Learjet Inc.; United Technologies Corporation.
OVERALL
Beta: 2.75
Market Cap (Mil.): $6,862.94
Shares Outstanding (Mil.): 276.62
Annual Dividend: 0.08
Yield (%): 0.32
FINANCIALS
TXT.N Industry Sector
P/E (TTM): 62.87 7.05 18.80
EPS (TTM): 184.79 -- --
ROI: 0.92 2.64 4.19
ROE: 4.31 5.79 7.33
Statistics:
Public Company
Incorporated: 1923 as Special Yarns Corporation
Employees: 68,000
Sales: $11.58 billion (1999)
Stock Exchanges: New York
Ticker Symbol: TXT
NAIC: 336411 Aircraft Manufacturing; 336112 Light Truck & Utility Vehicle Manufacturing; 33636 Motor Vehicle Seating & Interior Trim Manufacturing; 336399 All Other Motor Vehicle Parts Manufacturing
Key Dates:
1928: Raymond Little starts Special Yarns Corporation in Boston.
1952: Little starts Textron's cross-country buying spree.
1960: Bell Aircraft is acquired.
1963: Textron sells off its last textile holding.
1985: Textron acquires Avco for $3 billion.
1992: Cessna is bought, two years before aviation liability reform legislation enacted.
1999: Textron sees record profits; sells Avco Financial Services for $3 billion.
Name Age Since Current Position
Scott Donnelly 49 2010 Chairman of the Board, President, Chief Executive Officer
Frank Connor 51 2009 Chief Financial Officer, Executive Vice President
Terrence O'Donnell 66 2009 Executive Vice President, Chief Compliance Officer, General Counsel, Secretary
John Butler 63 1999 Executive Vice President - Administration, Chief Human Resources Officer
Charles Powell 69 2010 Lead Independent Director
Paul Gagne 64 2010 Independent Director
Joe Ford 73 1998 Independent Director
Lawrence Fish 66 2009 Independent Director
Ivor Evans 68 2003 Independent Director
Kathleen Bader 60 2004 Independent Director
R. Kerry Clark 58 2003 Independent Director
Dain Hancock 69 2005 Independent Director
James Ziemer 61 2007 Independent Director
Lloyd Trotter 66 2008 Independent Director
Address:
40 Westminster Street
Providence, Rhode Island 02903-2596
U.S.A.
With total revenues of $14.2 billion, and approximately 37,000 employees in 29 countries, Textron is currently ranked 220 on the Fortune 500 list of largest companies for 2010.
Textron Inc. has made so many changes in its corporate identity that any characterization of it is subject to revision on rather short notice. It has, however, consistently earned a profit for its stockholders. For that reason, many investors may not care what it does so long as it keeps generating a profit for them. Textron, involved in many industries, has limited its areas of investment since the 1970s. Through its Bell Helicopter and Cessna subsidiaries, Textron remains an important United States aerospace manufacturer.
Textron Inc. is a multi-industry company with a global network of aircraft, defense, industrial and finance businesses to provide customers with products and services worldwide. The Company conducts its business through five operating segments: Cessna, Bell, Textron Systems and Industrial, which represents its manufacturing businesses, and Finance, which represents its finance business. Cessna has five major lines of business: Citation business jets, Caravan single-engine utility turboprops, Cessna single-engine piston aircraft, aftermarket services and lift solutions by CitationAir. Textron Systems provides products to the defense, aerospace and general aviation markets. The Industrial segment includes its Kautex, Greenlee, E-Z-GO and Jacobsen businesses. Its Finance segment consists of Textron Financial Corporation (TFC) and its subsidiaries. In April 2009, the Company completed the sale of HR Textron, an operating unit within its Textron Systems segment, to Woodward Governor Company. In June 2010, the Company acquired MillenWorks.
Cessna Segment
Cessna Aircraft Company is a manufacturer of general aviation aircraft. Revenues in the Cessna segment accounted for approximately 32% of its total revenue during the fiscal year ended January 2, 2010 (fiscal 2009). The family of business jets produced by Cessna includes the Mustang, Citation CJ1+, Citation CJ2+, Citation CJ3, Citation CJ4, Citation Encore+, Citation XLS+, Citation Sovereign and Citation X. The Cessna Caravan is a utility turboprop. Caravans are offered in four models: the Grand Caravan, the Super Cargomaster, the Caravan 675 and the Caravan Amphibian. Caravans are used in the United States primarily for overnight express package shipments and for personal transportation. International uses of Caravans include humanitarian flights, tourism and freight transport. Cessna offers nine models in its single engine piston product line, which include the four-place Skyhawk, Skyhawk SP, Skylane, Turbo Skylane, 350 Corvalis and 400 Corvalis TT, the six-place Stationair and Turbo Stationair and the two-place SkyCatcher.
The Citation family of aircraft is supported by nine Citation Service Centers owned or operated by Cessna, along with authorized independent service stations and centers located in more than 22 countries throughout the world. Cessna-owned Service Centers provide customers with around-the-clock service and maintenance. Cessna also provides around-the-clock parts support for Citation aircraft. Cessna Caravan and single engine piston customers receive product support through independently owned service stations and around-the-clock parts support through Cessna.
Cessna markets its products worldwide through its own sales force, as well as through a network of authorized independent sales representatives, depending upon the product line. Cessna’s private jet business called CitationAir (formerly, CitationShares) offers a spectrum of private aviation solutions, including Jet Cards, Jet Shares, Jet Management and Corporate Solutions. The CitationAir fleet operates throughout the contiguous United States and in Canada, Mexico, Central America, the Caribbean and Bermuda.
Bell Segment
Bell Helicopter is a supplier of helicopters, tiltrotor aircraft, and related spare parts and services. Bell manufactures for both military and commercial applications. Revenues for Bell accounted for approximately 27% of its total revenues in fiscal 2009. Bell supplies advanced military helicopters and support to the United States Government and to military customers outside the United States. Bell is a primary supplier of helicopters to the United States Government and, in association with The Boeing Company, is a supplier of military tiltrotor aircraft. Bell’s major United States Government programs are the V-22 tiltrotor aircraft and the H-1 helicopters.
Bell is teamed with The Boeing Company to develop, produce and support the V-22 Osprey tiltrotor aircraft for the United States Department of Defense. Tiltrotor aircraft are designed to provide the benefits of both helicopters and fixed-wing aircraft. The United States Government has issued contracts for 286 production V-22 aircraft through production Lot 16, of which 116 have been delivered as of fiscal 2009. The United States. Marine Corps H-1 helicopter program includes a utility model and an advanced attack model, the UH-1Y and the AH-1Z, respectively, both of which were designed to have 84% parts commonality between them. Through production Lot 6, the United States Government has contracted for the production of 52 UH-1Y aircraft and 17 AH-1Z aircraft. It has delivered a combined total of 31 of these aircraft as of fiscal 2009.
Bell also is a supplier of commercially certified helicopters and support to corporate, offshore petroleum exploration and development, utility, charter, police, fire, rescue and emergency medical helicopter operators. Bell produces a variety of commercial aircraft types, including light single- and twin-engine helicopters and medium twin-engine helicopters, along with other related products. The commercial helicopters offered by Bell include the 206, 407, 412 and 429. Bell’s Customer Support and Service division provides post-sale service and support for its installed base of approximately 13,000 helicopters through a network of five Bell-owned service centers, more than 125 independent service centers and six supply centers that are located worldwide. Collectively, these service centers offer a complete range of logistics support, including parts, support equipment, technical data, training devices, pilot and maintenance training, component repair and overhaul, engine repair and overhaul, aircraft modifications, aircraft customizing, accessory manufacturing, contractor maintenance, field service and product support engineering.
Textron Systems Segment
Textron Systems is a primary supplier to the defense, aerospace and general aviation markets, providing approximately 18% of Textron’s revenues in fiscal 2009. This segment’s principal focus is to address the United States Department of Defense’s needs for force protection; situational awareness, including Intelligence, Surveillance, Reconnaissance (ISR); precision weapons, and related services and support. While this segment sells most of its products to United States customers, it also sells products to customers outside the United States through foreign military sales sponsored by the United States government and directly through commercial sales channels. The Textron Systems segment is comprised of five operating units: AAI, Textron Marine & Land Systems (TMLS), Textron Defense Systems, Lycoming and Overwatch.
AAI is the prime system integrator for the United States Army’s premier tactical Unmanned Aircraft System (UAS), the Shadow, which includes the One System Ground Control Station. TMLS is engaged in the design, production and support of advanced marine craft, armored combat vehicles, turrets and related subsystems. Textron Defense Systems is the United States Air Force’s prime contractor for the Sensor Fuzed Weapon, the United States. Lycoming Engines specializes in the engineering, manufacture, service and support of piston aircraft engines. Overwatch provides a multi-source intelligence and geospatial analysis solution.
Industrial Segment
Kautex is a developer and manufacturer of blow-molded fuel systems for cars, light trucks, all-terrain vehicles and windshield and headlamp washer systems, as well as selective catalytic reduction systems used to reduce emissions from diesel engines. Kautex serves the automobile market worldwide, with operating facilities near its major customers around the world. In addition to fuel systems and washer systems, in North America, Kautex produces engine camshafts for the automobile market. From facilities in Germany and Poland, Kautex develops and produces bottles and plastic containers for food, household, laboratory and industrial uses. Revenues of Kautex accounted for approximately 12% of its total revenues in fiscal 2009.
Greenlee designs and manufactures powered equipment, electrical test and measurement instruments, hand and hydraulic powered tools, and electrical and fiber optic assemblies under the Greenlee, Fairmont, Klauke, Paladin Tools, Progressive and Tempo brand names. The products principally are used in the electrical construction and maintenance, telecommunications, data communications, wiring and plumbing industries. E-Z-GO designs, manufactures and sells golf cars and off-road utility vehicles powered by electric and internal combustion engines under the E-Z-GO name, as well as multipurpose utility vehicles under the E-Z-GO and Cushman brand names. Jacobsen designs and manufactures professional turf-maintenance equipment as well as specialized turf-care vehicles. Brand names include Ransomes, Jacobsen and Cushman. Jacobsen’s customers include golf courses, resort communities, sporting venues and municipalities. Products are sold through a network of distributors and dealers.
Finance Segment
The Company’s Finance segment consists of Textron Financial Corporation (TFC), its subsidiaries and the securitization trusts consolidated into it, along with two other finance subsidiaries owned by Textron Inc. Its Finance segment is a diversified commercial finance business. Its Finance segment’s services are offered primarily in North America; however, purchases of certain Textron products, principally Bell helicopters and Cessna aircraft, are financed worldwide.
By the late 1980s, the hounds of peace could be heard over the Steppes. The end of the Cold War hurt defense company stocks, and as one analyst explained in Forbes, conglomerates generally suffered according to their lowest common denominator. At the time, Textron's 32 operating companies made up three groups: aerospace, commercial products, and financial services. In the last category, the company's Paul Revere Insurance helped lift Textron's balance sheet. Still, aerospace, with 1988 sales of $3.6 billion, remained the largest division (the other two had sales of less than $2 billion each).
Textron had high hopes in the $25 billion V-22 tilt-rotor aircraft program. Developed by Bell and Boeing for the U.S. Marine Corps, the fusion of helicopter and fixed-wing aircraft was expensive to fly. Faced with few possible users in the United States, the company resorted to asking Japan and West Germany for funding for a civilian variant. Fortunately, the market for civilian helicopters was up, and Avco Corp., now the Aerostructures division, had entered the booming airliner market, making wings for Airbus. Textron's automotive businesses also were generally lucrative.
One strategic priority was regaining an overseas presence, lost with the sale of Ex-Cell-O Corp.'s machine tool businesses in the mid-1980s. In 1989, however, U.S. regulators blocked Textron's $250 million purchase of Avdel, a British manufacturer of industrial fasteners. Textron was able to make progress through a manufacturing venture in The Netherlands with Ford and a helicopter distribution arrangement in Japan (Mitsui). Textron had revenues of $7.4 billion in 1989.
Textron acquired Cessna Aircraft from General Dynamics for $605 million in early 1992. The company had made 6,500 small planes a year in its heyday, but this business had been crippled by an industrywide wave of airplane crash lawsuits. When Textron bought it, Cessna was devoted to manufacturing its popular line of Citation business jets. Legislation in 1994 to limit manufacturers' liability on planes more than 18 years old, however, made making single-engined, propeller-driven aircraft feasible again, and the company resumed production on the small trainers that made it famous. Cessna's revenues were $783 million in 1993.
Revenues reached $8.3 billion in 1992. Aerospace contributed more than a third of the company's profits, in spite of the reliance on military contracts. The financial segment accounted for 43 percent of income; commercial, 20 percent. James F. Hardymon became CEO in 1992 after joining Textron as president and chief operating officer three years earlier. (He had previously held those two positions at Emerson Electric.)
Textron bought Acustar, Chrysler's plastics operations, for $139 million in 1993. The same year, it sold the public a 16.7 percent stake in Paul Revere Insurance, the star of Textron's financial services portfolio. The unit suffered heavy disability claims in 1994, which led Hardymon to consider selling the remainder of the company. Homelite, a maker of lawn care equipment, was divested in 1994, as was piston aircraft engine manufacturer Lycoming. These sales took in $495 million. After several years, Textron finally was able to gain control of Avdel. In the mid-1990s, the fastener and automotive businesses were merged into Textron Fastening Systems and Textron Automotive Company, respectively. In late 1994, Bell did win a $2.5 billion contract to make just six V-22 aircraft for the U.S. military, although a V-22 crash soured the Pentagon on a full-scale production contract.
Hardymon retired in July 1998, succeeded by Lewis B. Campbell. Like his predecessor, Campbell had grown up in the rural South and studied engineering before working in sales, marketing, and management positions. Campbell formed his career at GM, rather than Emerson Electric, like Hardymon. He joined Textron in 1992 and became president and chief operating officer within two years. Campbell also became board chairman in February 1999.
By the late 1990s, more than 30 percent of Textron's revenues came from abroad. The company posted record results in 1999 as revenues increased 20 percent. Textron acquired 18 business and entered two joint ventures while selling Avco Financial Services for $2.9 billion. A fatal crash of a Marine V-22 Osprey in April 2000, however, raised doubts about the viability of the program.
Principal Subsidiaries: Bell Helicopter Textron; Cessna Aircraft Company; Textron Automotive Company; Textron Fastening Systems; Textron Industrial Products; Textron Turf Care and Specialty Products.
Principal Divisions: Aircraft; Automotive; Industrial; Finance.
Principal Competitors: General Electric Corporation; Learjet Inc.; United Technologies Corporation.
OVERALL
Beta: 2.75
Market Cap (Mil.): $6,862.94
Shares Outstanding (Mil.): 276.62
Annual Dividend: 0.08
Yield (%): 0.32
FINANCIALS
TXT.N Industry Sector
P/E (TTM): 62.87 7.05 18.80
EPS (TTM): 184.79 -- --
ROI: 0.92 2.64 4.19
ROE: 4.31 5.79 7.33
Statistics:
Public Company
Incorporated: 1923 as Special Yarns Corporation
Employees: 68,000
Sales: $11.58 billion (1999)
Stock Exchanges: New York
Ticker Symbol: TXT
NAIC: 336411 Aircraft Manufacturing; 336112 Light Truck & Utility Vehicle Manufacturing; 33636 Motor Vehicle Seating & Interior Trim Manufacturing; 336399 All Other Motor Vehicle Parts Manufacturing
Key Dates:
1928: Raymond Little starts Special Yarns Corporation in Boston.
1952: Little starts Textron's cross-country buying spree.
1960: Bell Aircraft is acquired.
1963: Textron sells off its last textile holding.
1985: Textron acquires Avco for $3 billion.
1992: Cessna is bought, two years before aviation liability reform legislation enacted.
1999: Textron sees record profits; sells Avco Financial Services for $3 billion.
Name Age Since Current Position
Scott Donnelly 49 2010 Chairman of the Board, President, Chief Executive Officer
Frank Connor 51 2009 Chief Financial Officer, Executive Vice President
Terrence O'Donnell 66 2009 Executive Vice President, Chief Compliance Officer, General Counsel, Secretary
John Butler 63 1999 Executive Vice President - Administration, Chief Human Resources Officer
Charles Powell 69 2010 Lead Independent Director
Paul Gagne 64 2010 Independent Director
Joe Ford 73 1998 Independent Director
Lawrence Fish 66 2009 Independent Director
Ivor Evans 68 2003 Independent Director
Kathleen Bader 60 2004 Independent Director
R. Kerry Clark 58 2003 Independent Director
Dain Hancock 69 2005 Independent Director
James Ziemer 61 2007 Independent Director
Lloyd Trotter 66 2008 Independent Director
Address:
40 Westminster Street
Providence, Rhode Island 02903-2596
U.S.A.