E-Z-GO 1998 Annual Report Download - page 8

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It is indeed a challenging time, and we have taken our contingency
planning efforts very seriously. Our systematic, disciplined multi-year
planning process, comprehensive Y2K program and Euro strategy are
examples of how we are actively preparing for future events to ensure
consistent performance.
Seamless Leadership Transition
In 1998, we successfully completed our internal leadership transition, affirm-
ing the company’s well-defined succession planning process. President and
Chief Operating Officer John Janitz and I are dedicated to the vision estab-
lished for the company in 1993, and to the principles of operating excellence
and continuous improvement that have become a way of life at Textron.
One of my first priorities after becoming CEO was to create the Executive
Leadership Team, comprised of the top 10 leaders at Textron. In today’s rapidly
evolving business environment, it is imperative that we make decisions quickly
and in complete alignment with the company’s strategic direction. The forma-
tion of this group signals the increased teamwork and cooperation we expect
from every person in the organization to more effectively leverage our
strengths and achieve the efficiencies demanded in today’s marketplace.
People Make the Difference
A company is only as strong as the performance of its people. Through the
diligence and dedication of our 64,000 employees, Textron has been able to
realize its impressive, nine-year record of achievement while building the
foundation for future growth. As the global business environment contin-
ues to evolve, success will require more ingenuity, speed and commitment
than ever before. Our people provide the competitive edge that will drive
Textron to achieve its vision and earn its place among the finest companies
in the world.
Special Thanks
After nine years with Textron, Jim Hardymon retired this past January.
Jim made a tremendous contribution to Textron. Through his leadership,
we developed an operating discipline and a company-wide focus on business
fundamentals, which are essential to the foundation of our operations
management process and our focus on quarterly earnings improvement.
Together, we established a vision, a management team and a record of
performance that will serve us well for years to come.
4
Financial Goals
Setting and achieving
ambitious financial goals is
fundamental to Textron’s
management process.
In 1998, we continued to
deliver on our five financial
targets:
P
Double-Digit Earnings
per Share Growth
Performance: Double-digit
gains in each of the last six
years, 22% in 1998
P
Annual Revenue Growth
of 8-11%
Performance: 14% annual
growth rate in core revenues
over last six years, 12%
increase in 1998
P
Operating Margins
Exceeding 12%
Performance: 10.7% in 1998,
up from 9.2% in 1992
P
ROIC Exceeding 15%
Performance: 13.7% in 1998,
up from 11% in 1992
P
Debt-to-Capital Ratio in
Mid-30% Range
Performance: 43% in 1998