E-Z-GO 2000 Annual Report Download - page 25

Aircraft
Revenues
$3,380
$4,019
$4,394
009998
9%19%5%
Segment
Profit
$338 $362
$451
009998
25%7%8%
Bell Helicopter’s revenues increased $33 million as higher foreign military sales ($54 million),
higher commercial spares sales ($21 million) and higher revenues on the V-22 Osprey tiltrotor aircraft
production contract ($41 million) were partially offset by lower sales of commercial and other military
helicopters ($71 million). Bell’s profit increased due to the higher revenues and higher income
related to retirement benefits. This favorable impact was partially offset by the lower recognition
into income ($30 million in 2000 vs. $37 million in 1999) of cash received from a joint venture
partner in 1998 on the formation of the BA609 program. Product development expense for 2000
increased slightly as higher spending on the BA609 commercial tiltrotor aircraft (net of the benefit
of the contribution from a new supplier for the BA609 fuselage) was offset by lower spending on
other programs.
The Department of Defense is investigating a recent mishap of the V-22 tiltrotor aircraft. Pending
the results of the investigation, the U.S. Marine Corps has temporarily restricted the use of their
V-22 aircraft. While current production continues under a low rate production contract, approval
of a full rate production contract by the Department of Defense will probably be delayed pending
the outcome of the investigation. During 2000, the Company recognized total revenue of $432
million under the V-22 program.
1999 vs.1998
The Aircraft segment’s revenues and profit increased $639 million (19%) and $24 million (7%),
respectively, due to higher results at Cessna Aircraft.
Cessna Aircraft’s revenues increased $523 million as a result of higher sales of business jets, pri-
marily the Citation X and the Citation Excel, higher single-engine piston aircraft sales and
increased spares and service revenues. Its profit increased as a result of the higher sales, partially
offset by increased manufacturing costs associated with the ramp-up in production of new aircraft,
higher warranty expense and increased new product development expense related to the
Citation CJ2.
Bell Helicopter’s revenues increased $116 million, due primarily to higher revenues on the V-22
production contract ($105 million) and the Huey and Cobra upgrade contracts ($63 million) and
higher foreign military sales ($42 million), partially offset by lower commercial and U.S.
Government helicopter sales ($102 million). Bell’s profit was unchanged from the 1998 level. 1999
results reflected the full year recognition into income ($37 million in 1999 vs. $10 million in 1998)
of cash received in 1998 on the formation of a joint venture on the BA609 program, partially off-
set by higher expense related to new product development, while 1998 results reflected favor-
able contract adjustments related to the Bell-Boeing V-22 Engineering, Manufacturing and
Development contract.
Automotive
2000 vs.1999
The Automotive segment’s revenues increased $56 million (2%) while profit increased $24 million (11%)
resulting in a 60 basis point increase in margin. These results were achieved despite North American
automotive original equipment manufacturer (OEM) production decreases in the fourth quarter 2000.
Trim revenues increased $46 million due to the contribution from acquisitions, primarily the
Plascar and the Textron Automotive Italia, S.r.l. joint venture (formerly referred to as Textron Breed
Automotive, S.r.l) and major new program launches, partially offset by customer price reductions.
Profit increased 9% due to improved operating performance and the contribution from acquisi-
tions partially offset by higher petroleum-based resin prices, customer price reductions and
higher engineering and design expense to support future programs.
Fuel Systems and Functional Components revenues increased $10 million as a result of higher sales
volume at Kautex, partially offset by the negative impact of foreign exchange and customer price
reductions. Profit increased 14% due to improved operating performance at Kautex and a gain from
the sale of two non-core product lines, partially offset by the unfavorable impact of foreign
exchange, customer price reductions and higher petroleum-based resin prices.
S
Automotive
Revenues
$2,356
$2,868 $2,924
009998
2%22%14%
Segment
Profit
$171
$220
$244
009998
11%29%21%
23 TEXTRON 2000 ANNUAL REPORT