E-Z-GO 1999 Annual Report Download - page 33

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Automotive
1999 vs. 1998
The Automotive segment’s revenues increased $511 million (21%), while income
increased $49 million (27%). The increase in revenues was due primarily to higher North
American market penetration by Kautex and higher sales at Trim, reflecting increased
production at DaimlerChrysler, Ford and General Motors, which was depressed in 1998
by a strike. The increase in revenues also reflected the benefit of the Textron Breed
Automotive S.r.l. joint venture and the Midland Industrial Plastics acquisition. Despite
customer price reductions, income increased due to the contribution from higher
organic sales and improved operating performance at Trim and Kautex.
1998 vs. 1997
The Automotive segment’s revenues increased $278 million (13%), while income before
special charges increased $29 million (19%). The revenue increase was due to higher
North American market penetration by Kautex and higher sales at Trim, due primarily to
increased Chrysler production (which was depressed by a strike at Chrysler in the second
quarter of 1997) and the contribution from acquisitions. These revenue increases were
partially offset by the impact of a strike at General Motors in 1998 and the impact of
customer price reductions. The increase in income reflected the above factors and
improved operating performance at Trim.
Industrial
1999 vs. 1998
The Industrial segment’s revenues and income before special charges increased $734 million
(20%) and $73 million (18%), respectively.
◗Fastening Systems revenues increased $324 million (18%) as a result of the contribu-
tion from acquisitions, primarily Flexalloy, Ring Screw Works, Peiner, Sükosim and
InteSys, partially offset by lower revenues in Europe, which were negatively impacted
by foreign exchange. Its income increased as the benefit from acquisitions more than
offset the lower revenues in Europe. Results were also affected by unfavorable operating
performance at certain plants in Europe caused by production scheduling issues, inte-
gration costs in the Vendor Managed Inventory business, lower income at an automo-
tive plant related to economic conditions in Brazil and non-recurring costs associated
with restructuring programs started in 1999.
◗Other Industrial Products revenues increased $410 million (21%) as a result of the
contribution from acquisitions, primarily David Brown, OmniQuip, Ransomes and
Progressive Electronics, and higher organic sales at Golf, Turf Care And Specialty
Products and Greenlee. Its income increased as a result of the higher sales combined
with strong margin improvement at Golf, Turf Care And Specialty Products and
Textron Systems, and a gain on the sale of a product line. These benefits were partially
offset by lower organic sales at Power Transmission Products, reflecting a decline in the
worldwide mechanical power transmission market, and Turbine Engine Components
due to lower customer requirements, and the impact of the divestiture of Fuel Systems
in the second quarter 1998. In addition, 1998 results were depressed by a one-month
strike at a Turf Care plant.
1998 vs. 1997
The Industrial segment’s revenues and income before special charges increased $541 million
(17%) and $64 million (18%), respectively.
◗Fastening Systems revenues increased $260 million (17%) as a result of the contribu-
tion from acquisitions, primarily Ring Screw Works, Sükosim and Peiner. Its income
increased as a result of the higher sales and improved operating performance. These
benefits were partially offset by a strike at General Motors in 1998.
◗Other Industrial Products revenues increased $281 million (17%) as a result of the contribu-
tion from acquisitions, primarily Ransomes and David Brown and higher organic sales across
all business groups. Its income increased as a result of the higher sales combined with
1999 Textron Annual Report 31
$2,916
$2,405
$2,127
999897
21%13%31%
Automotive
Revenues
$228
$179
$150
999897
27%19%3%
Operating
Income
$4,456
$3,722
$3,181
999897
20%17%8%
Industrial
Revenues
$483
$410
$346
999897
18%18%15%
Operating
Income