E-Z-GO 2000 Annual Report Download - page 26

In order to address performance issues in certain businesses and better align itself with current eco-
nomic and market conditions, Textron has approved restructuring programs at Trim and in the Fuel
Systems and Functional Components businesses.
1999 vs.1998
The Automotive segment’s revenues increased $512 million (22%), while profit increased $49 mil-
lion (29%).
Trim revenues increased $315 million (21%) 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 Automotive Italia, S.r.l. joint venture and the Midland
Industrial Plastics acquisition. Profit increased 25% due to the higher sales, partially offset by
customer price reductions.
Fuel Systems and Functional Components revenues increased $197 million (23%) due primarily
to higher North American market penetration by Kautex. Despite customer price reductions,
profit increased 37% due to higher sales and improved operating performance at Kautex.
Fastening Systems
2000 vs. 1999
The Fastening Systems segment’s revenues increased $55 million (3%), while profit decreased
$8 million (4%). Revenues increased due to the contribution from acquisitions, primarily InteSys
Technologies. This increase in revenues was partially offset by the unfavorable impact of foreign
exchange in its European operations, lower volume in the heavy truck industry and customer price
reductions. Segment profit decreased as improved operating performance at Commercial Solutions
and Automotive Solutions and the benefit from acquisitions were offset by the unfavorable impact
of customer price reductions, foreign exchange and lower volume in the heavy truck industry. As
discussed on page 25 under “Special Charges, Net”, Textron recorded a $128 million goodwill
impairment write-down related to Fastening Systems.
In order to address performance issues in certain businesses and better align itself with current
economic and market conditions, Textron has approved restructuring programs at Advanced
Solutions, Automotive Solutions and Commercial Solutions.
1999 vs.1998
The Fastening Systems segment’s revenues and profit increased $324 million (18%) and $4 million
(2%), respectively. Revenues increased as a result of the contribution from acquisitions, primarily
Flexalloy, Ring Screw Works, Peiner, Sükosim and InteSys Technologies, partially offset by the unfa-
vorable impact of foreign exchange in its European operations. Its profit 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, integration costs in the Vendor Managed Inventory business, lower profit at an automotive
plant related to economic conditions in Brazil and non-recurring costs associated with restructuring
programs started in 1999.
Industrial Products
2000 vs.1999
The Industrial Products segment’s revenues and profit increased $522 million (22%) and $42 million
(14%), respectively. Revenues increased as a result of the contribution from acquisitions, primarily
OmniQuip, and higher organic sales at Golf and Turf, Textron Marine & Land Systems, Greenlee,
Textron Motion Control and Textron Lycoming. This increase in revenues was partially offset by lower
revenues at Textron Systems, due to a change in contract mix, and lower demand at Textron Power
Transmission, Textron Fluid Handling Products and Turbine Engine Components Textron (TECT).
Profit increased primarily as a result of the contribution from acquisitions, higher income related to
retirement benefits and improved margins at Textron Motion Control and Textron Systems. This
Fastening Systems
Revenues
$1,758
$2,082 $2,137
009998
3%18%17%
Segment
Profit
$186 $190 $182
009998
(4)%2%11%
Industrial Products
Revenues
$2,013
$2,422
$2,944
009998
22%20%16%
TEXTRON 2000 ANNUAL REPORT 24