E-Z-GO 1999 Annual Report Download

Download and view the complete annual report

Please find the complete 1999 E-Z-GO annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 71

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71

consistent
growth
1999 Annual Report

Table of contents

  • Page 1
    1999 Annual Report growth consistent

  • Page 2
    ... Aircraft, Kautex, Lycoming, E-Z-GO, Greenlee, Ransomes, Camcar and David Brown, among others. Our market-leading companies are redefining industries and generating strong growth and profitability. 1999 Textron Annual Report IFC1

  • Page 3
    Aircraft page 8 Bell Helicopter page 10 Cessna Aircraft page 12 highlights 1999 Operating Results ($ in millions) financial Automotive page 14 1998 change Revenues Operating income Income from continuing operations Free cash flow from manufacturing operations $11,579 $ 1,...

  • Page 4
    ... record r To Our Shareowners, Employees and Customers: In 1999, Textron delivered the strongest financial results in our 76-year...acquired 18 businesses and created two joint ventures with approximately $1.6 billion in annual revenues. â-- We continued to expand our geographic reach, generating 36% ...

  • Page 5
    ...year record of 23% average annual returns to shareowners underscores the ...momentum were not rewarded in the stock market in 1999. This disappointment only fueled our determination to execute our... company we aspire to be. Textron has reported ten consecutive years of earnings growth, including...

  • Page 6
    ... growth. In all of our business segments, we are aggressively driving the top line while improving the bottom line at an even faster pace. In 1999: fiber optics while stepping up the pace of integration, evidenced by our 370 basis point margin improvement in Golf, Turf Care And Specialty Products...

  • Page 7
    1999...least 15% ROIC. Our exceptional 9% organic growth rate in 1999 is testimony to the success of our new products and ...our "bolt-on" acquisition strategy. In 1999 we acquired 18 companies and created two ... Double-Digit Earnings Per Share Growth â-- Annual Revenue Growth of 8-11% â-- Operating...

  • Page 8
    ..., inventory reduction, investment in technology and accelerated acquisition integration. Selected segmentspecific programs are outlined in the following pages. In 1999, we initiated an intense, company-wide e-business initiative that began to hit its stride as we entered the new millennium...

  • Page 9
    ... Company with Global Leadership Positions in Each of Our Businesses company. We know what we need to do, and we will get it done. Sincerely, 1999 Textron Annual Report 7

  • Page 10

  • Page 11
    B ell Helicopter is a leading international producer of commercial and military helicopters and the pioneer of the revolutionary tiltrotor aircraft. Bell continues to strengthen its leadership position by exploiting tiltrotor technology, investing in next-generation products and leveraging its ...

  • Page 12
    ...is making an indelible mark on the history of aviation by combining the versatility of a helicopter with the speed and range of a fixed-wing aircraft. 1999 marked the delivery of the first three production Bell Boeing V-22 tiltrotors to the U.S. Marines. 3 99 00 01 02 03 10 Consistent Growth

  • Page 13
    ... none. Our new on-line service capabilities enable customers to order replacement parts and download service manuals anytime, from anywhere in the world. Bell Helicopter's innovative use of ... be utilized to drive efficiencies in our logistics support network. â-- â-- 1999 Textron Annual Report 11

  • Page 14
    ...and New Pr Jake Harouny Medallion Exploration (Cessna Customer) "Cessna's tremendous product offering, combined with outstanding service and support, keep us coming back, time and again!" Textron Quality Management Initiatives - Cessna Aircraft â-- â-- â-- Implement Cessna 2020 Operating ...

  • Page 15
    ... inventory. $16.5 $3.7 CJ 2 Br a Ul tra vo En co re Ex ce Ci l ta tio nV II So ve re ign Ci ta tio n X CJ 1 1999 Textron Annual Report 13

  • Page 16

  • Page 17
    ...facilities in 15 countries, our innovative automotive solutions can be found on over 100 different car and light truck platforms worldwide. 1999 was a banner year for Textron Automotive, with strong growth and continued operational improvement. Looking ahead, Automotive is well positioned to achieve...

  • Page 18
    Driving Te Stephen Hiltner North American Sales Manager McCord Winn Textron Textron Automotive's integrated HVAC System improves heating and cooling performance by 40 percent and gives consumers a glove box large enough to hold a laptop computer. "Technology is the differentiating factor that keeps...

  • Page 19
    ... orders. Customers around the world are recognizing Textron Automotive as a company that stands for technology, innovation, craftsmanship and quality. In 1999, we received 17 awards from the industry and major OEMs including DaimlerChrysler, Volkswagen, Ford, Audi and others - a testimony to the...

  • Page 20

  • Page 21
    T extron's Industrial Segment serves the fastening systems, fluid handling, motion control, power transmission, golf and turf-care, light construction, and electrical testing and installation industries. Our Industrial businesses offer leading, globallyrecognized brands such as Avdel, Cherry, ...

  • Page 22
    staying globally Connec through solutions, Through our leading product brands such as Avdel, Camcar, Elco, Cherry, Ring Screw and Sükosim, TFS serves myriad industries in 40 countries. Organized into four global, market-focused groups - Automotive, Commercial, Supply Chain and Advanced Solutions -...

  • Page 23
    ...our role in the value chain, service is pivotal to success. Vendor Managed Inventory (VMI) - In 1999, we won a groundbreaking VMI contract with Ford Motor Company. Under this landmark contract, TFS manages all... VMI to new levels of speed, efficiency and convenience. 1999 Textron Annual Report 21

  • Page 24
    ... the pace in our pursuit of strong organic growth. At Golf, Turf Care And Specialty Products, this means 43 new product introductions in 1999 alone - making us the preferred one-stop source for turfcare professionals around the world. At Greenlee Textron, a group of highly OmniQuip's LULL telescopic...

  • Page 25
    ... the Industrial Products group. Newly acquired Rifocs Corporation expands our presence in emerging markets like the data-signal-voice market and more specifically, fiber optics. 1999 Textron Annual Report 23

  • Page 26

  • Page 27
    T extron Financial is a diversified commercial finance company specializing in term financing for the purchase of aircraft, golf-related products and general equipment, as well as revolving credit and specialty financing. Textron Financial has achieved over 21 consecutive years of net income growth...

  • Page 28
    financing customers' Business Dreams at the speed of inspiration Textron Quality Management Initiatives - Textron Financial â-- Leverage E-business opportunities by: - Working with established internet portal providers to establish e-loan origination and electronic payment capabilities. - Improving...

  • Page 29
    ...'s Discussion and Analysis Report of Management, Report of Independent Auditors Consolidated Financial Statements Notes to Consolidated Financial Statements Quarterly Data Selected Financial Information Executive Leadership Team Textron Business Directory 1999 1999 Textron Annual Report 27

  • Page 30
    ...Data For a description of the businesses comprising each segment, see pages 66 through 68. Revenues (In millions) Operating Income 1997 $3,025 2,127 3,181 350 $8,683 1999 $ 362 228 483 128 1,201 - 1 (143) 27 (56) $1,030 1998 $ 338 179 410 113 1,040 97 (87) (141) - (146) $ 763 1997 $ 313 150 346 108...

  • Page 31
    ... from continuing operations - diluted decreased $117 million as a result of the proceeds received in January 1999 from the divestiture of AFS. Interest income increased $27 million, as a result of Textron's net... proceeds in 1997 from the divestiture of Paul Revere. 1999 Textron Annual Report 29

  • Page 32
    ... Bell's research and development effort under the program is classified as company-funded research and development and totaled approximately $60 million in 1999. This amount is net of approximately $23 million of reimbursements from the joint venture partner, but excludes all amounts spent by Agusta...

  • Page 33
    ... improved operating performance at Trim. 31% 13% 21% Operating Income $179 $150 $228 Industrial 1999 vs. 1998 97 98 99 The Industrial segment's revenues and income before special charges increased $734 ...income increased as a result of the higher sales combined with 1999 Textron Annual Report 31

  • Page 34
    ...by a lower provision for loan losses in the real estate portfolio. Included in 1999 results was a gain of $4.7 million on the sale of an investment in...recorded pre-tax charges of $18 million and $87 million in 1999 and 1998, respectively, related to restructuring activities. The charges include asset...

  • Page 35
    ... 1999. During 1999,...in early 1999, the methodology...49-50. During 1999, Textron retired ...loss of $43 million. During 1999, Textron issued $300 million of... 1999. In 1999,...of 1999, Textron issued $...quarter of 1999, Textron Finance...$3 billion. In December 1999, Textron Finance issued $...year-end 1999, Textron ...

  • Page 36
    ... share repurchase program at an aggregate cost of $751 million. Textron's Board of Directors raised the annual dividend per common share to $1.30 in 1999 from $1.14 in 1998. In 1999, dividend payments to shareholders included four payments as opposed to 1998 when three payments were paid. Dividend...

  • Page 37
    ...year-end 1999, Textron Manufacturing...In June 1999, Textron ...rates around year-end 1999. The fixed rate...expense in 1999 or 1998...At year-end 1999, Textron Finance has... reported interest expense by $2 million in 1999;...1999 and 1998. Effective January 1, 1999... between January 1, 1999 and January 1,...in 1999....

  • Page 38
    ... is most likely not indicative of actual results in the future. 1999 (In millions) 1998 Carrying Value Hypothetical Fair Change Value In Fair... sites approximated $16 million, $10 million and $10 million in 1999, 1998, and 1997, respectively. Textron currently projects that expenditures for ...

  • Page 39
    ... and in 1999 were made primarily to the countries of Venezuela (41%), Taiwan (34%), Japan (4%), Jamaica (4%), Bulgaria (3%), Israel (2%), and Germany (2%). All sales are made in full compliance with all applicable laws and in accordance with Textron's code of conduct. 1999 Textron Annual Report 37

  • Page 40
    ... of all fiscal years beginning after June 15, 2000. Textron is evaluating the potential impact of this pronouncement on future reporting. At the September 23, 1999 meeting, the EITF reached a consensus on Issue 99-5, "Accounting for Pre-Production Costs Related to Long-Term Supply Arrangements." The...

  • Page 41
    ...and objectivity of the financial data presented in this Annual Report. The consolidated financial statements have been prepared in conformity...balance sheets of Textron Inc. as of January 1, 2000 and January 2, 1999, and the related consolidated statements of income, cash flows and changes in ...

  • Page 42
    Consolidated Statements of Income For each of the three years in the period ended January 1, 2000 (In millions except per share amounts) 1999 $11,116 9,111 1,075 - (1) 56 (27) 10,214 902 463 204 99 32 335 128 1998 $9,316 7,572 958 (97) 87 146 - 8,666 650 367 ...

  • Page 43
    ...Textron Finance Cash Finance receivables - net Other assets (including goodwill of $211 in 1999 and $27 in 1998) Total Textron Finance assets Total assets Liabilities and shareholders' equity...98) 6,764 2,387 4,377 $16,393 6 7 24 931 3,786 (96) 4,658 1,661 2,997 $13,721 41 1999 Textron Annual Report

  • Page 44
    ... in the period ended January 1, 2000 (In millions) Consolidated 1999 $ 623 1998 $ 443 1997 $ 372 Cash flows from operating...: Cash paid during the year for interest Cash paid during the year for income taxes (includes $912 in 1999 for AFS disposal) - - 349 91 34 - (1) 63 - 187 292 69 21 (54) 87 ...

  • Page 45
    ... $ 623 1998 $ 443 1997 $ 372 $ 1999 79 Textron Finance 1998 $ 70 $ 1997 68 (43) - 337 84 2 - (1) 68 (8) 187 282 66 1 (54) 87 (18) 6 108 243 56 2 - - 61 - ... - (190) 6 7 13 $ 192 230 $ 182 35 $ 153 30 $ 153 44 See notes to the consolidated financial statements. 1999 Textron Annual Report 43

  • Page 46
    ...793 1 48 (12) $ 830 $2,969 558 (1) (164) $3,362 $ 612 328 (1) $ 939 $ 7 (73) 4 - (69) $ (62) $ 558 (69) $ 489 *Shares issued at the end of 1999, 1998, 1997, and 1996, were as follows (in thousands): $2.08 Preferred - 228; 247; 270; and 312; shares, respectively; $1.40 Preferred - 561; 573; 579; and...

  • Page 47
    ...Its principal markets (listed within segments in order of the amount of 1999 revenues) and the major locations of such markets are as follows:...liability, workers compensation, environmental, and warranty reserves, and amounts reported under long-term contracts. Management's estimates are based on the...

  • Page 48
    ... and debt assumed of $308 million. In addition, in 1999 Textron Finance had acquisitions totaling $1.3 billion, including debt assumed ...Corporation for $3.9 billion in cash. The sale was completed on January 6, 1999. Net after-tax proceeds were approximately $2.9 billion, resulting in an after-...

  • Page 49
    ...391 589 $3,506 Less finance charges Finance receivables outstanding $202 1 9 106 4 281 $603 1999 $2,137 657 1,400 509 549 348 5,600 113 $5,487 1998 $1,339 572 556 424 375 ...the year 1999 $ 84 32 (28) 5 20 $113 1998 $ 77 20 (21) 5 3 $ 84 1997 $ 75 21 (25) 6 - $ 77 47 1999 Textron Annual Report

  • Page 50
    ...guaranteed by Textron are past due loans of $72 million at the end of 1999 ($55 million at year-end 1998) that meet the non-accrual criteria but ... of progress payments and customer deposits, were $181 million at year-end 1999 and $178 million at year-end 1998. 5. Long-Term Contracts Revenues under...

  • Page 51
    ...069 $2,513 January 2, 1999 $ 942 3,150 4,092...January 2, 1999. Goodwill... Textron will report a Cumulative ...1999 and 1998, debt consisted of the following: (In millions) January 1, 2000 January 2, 1999...1999, 1998, and 1997, respectively. Comparable rates during the years 1999...-end 1999, $797 million...

  • Page 52
    ... making of investments. The following table shows required payments during the next five years on debt outstanding at the end of 1999. The payments schedule excludes amounts that are payable under credit facilities and revolving credit agreements. (In millions) Textron Manufacturing Textron Finance...

  • Page 53
    ... million (6.06%) through 2020. Textron Finance had agreements ($50 million notional amounts) which expired in 1999 that adjusted the average rate of interest on fixed-rate notes during the current year to 6.74... exceed Textron's obligations to the counterparty. 1999 Textron Annual Report 51

  • Page 54
    ... - $(9) January 1, 2000 British Pound Canadian Dollar Euro Other Total January 2, 1999 British Pound Canadian Dollar German Mark French Franc Other Total 9. Textron Finance - ...Corporation) was acquired by Textron Financial Corporation during 1999. Prior to the acquisition, Litchfield issued Series ...

  • Page 55
    ...1999 Long-Term Incentive Plan (the "1999 Plan") was approved by shareholders in April 1999. The 1999... authorized by the 1999 Plan are: ...1999,...million in 1999, $... options in 1999, 1998, ...06 per diluted share in 1999, $9 million or $.06 ...value of an option granted in 1999, 1998, and 1997, respectively...

  • Page 56
    ...36.74 $30.21 Stock options outstanding at the end of 1999 are summarized as follows: Weighted Average Remaining Contractual Life Weighted ...28.38 $53.50 $74.28 Reserved shares of common stock At year-end 1999, 3,023,000 shares of common stock were reserved for the subsequent conversion of preferred ...

  • Page 57
    ...defined contribution plans amounted to approximately $40 million, $40 million, and $36 million in 1999, 1998 and 1997, respectively. Defined benefits under salaried plans are based on salary and ... health care and life insurance benefits for certain retired employees. 1999 Textron Annual Report 55

  • Page 58
    ... plans with accumulated benefit obligations in excess of plan assets were $191 million, $159 million, and $16 million, respectively, as of year-end 1999, and $267 million, $231 million, and $78 million, respectively, as of year-end 1998. The following summarizes the net periodic benefit cost for...

  • Page 59
    ... deferred tax asset consisted of gross deferred tax assets and gross deferred tax liabilities of $1,966 million and $1,810 million, respectively, at the end of 1999 and $1,775 million and $1,576 million, respectively, at the end of 1998. 1999 Textron Annual Report 57

  • Page 60
    ... for credit losses Other, principally timing of other expense deductions January 1, 2000 $(353) 184 171 (164) 144 (51) 38 187 $ 156 January 2, 1999 $(350) 205 186 (171) 152 (48) 33 192 $ 199 Deferred income taxes have not been provided for the undistributed earnings of foreign subsidiaries, which...

  • Page 61
    ...a current market exchange. January 1, 2000 Estimated Carrying fair value value January 2, 1999 Estimated Carrying fair value value (In millions) Assets: Textron Finance: Finance receivables Other... have a material effect on Textron's net income or financial condition. 1999 Textron Annual Report 59

  • Page 62
    ... next five to ten years. 19. Segment Reporting Textron has four reportable segments: Aircraft, Automotive, Industrial and Finance. ... manufacturing division. The following summarizes the revenues by type of products: (In millions) 1999 $ 2,219 1,525 1,796 1,120 2,082 895 773 706 463 $11,579 1998...

  • Page 63
    ... were the following: - Textron (In millions) January 1, 2000 January 2, 1999 Manufacturing Customer deposits $ 253 $ 195 Current Liabilities Salary, wages and employer taxes 232 226 Reserve for warranties Other Total accrued liabilities 193 541 $1,219 148 529 $1,098 1999 Textron Annual Report 61

  • Page 64
    Quarterly Data (Unaudited) (Dollars in millions except per share amounts) 1999 Q4 Q3 Q2 Q1 Q4 Q3 1998 Q2 Q1 Revenues Aircraft Automotive Industrial Finance Total revenues Income Aircraft Automotive Industrial Finance Total operating income Gain ...

  • Page 65
    ...Information (Dollars in millions except where otherwise noted and per share amounts) 1999 1998 1997 1996 1995 1994 1993 1992 Revenues Aircraft Automotive Industrial Finance ...Assumes full conversion of outstanding preferred stock and exercise of stock options. 1999 Textron Annual Report 63

  • Page 66
    Left to right: Jack W. Sights Chairman, President and Chief Executive Officer Textron Fastening Systems Kenneth C. Bohlen Senior Vice President Corporate Information Management and Chief Information Officer Textron Inc. John D. Butler* Executive Vice President Administration and Chief Human ...

  • Page 67
    ... Purves Former Chairman HSBC Holdings plc United Kingdom Ratan N. Tata Chairman Tata Industries Limited India Horst Teltschik Member of the Management Board BMW AG Germany 1999 Textron Annual Report 65

  • Page 68
    Textron Business Directory Aircraft Bell Helicopter Textron Terry D. Stinson Chairman and CEO Vertical takeoff and landing aircraft for the U.S. government, foreign governments and commercial markets. Light- and mid-size business jets, utility turboprops and single-engine piston aircraft. Automotive...

  • Page 69
    ... Care And Specialty Products Americas Textron Turf Care And Specialty Products Europe/Asia Philip J. Tralies President Harold C. Pinto Managing Director Greenlee Textron Barclay S. Olson President 1999 Textron Annual Report 67

  • Page 70
    Textron Business Directory Industrial (continued) (continued) OmniQuip Textron P. Enoch Stiff President and CEO Light construction equipment, including telescopic material handlers, aerial work platforms and skid steer loaders. Telescopic material handlers. Includes: SKY TRAK and LULL. Compact ...

  • Page 71
    1999 Annual Report Textron Inc. 40 Westminster Street Providence, RI 02903 401.421.2800 www.textron.com 1999 Textron Annual Report BC1