E-Z-GO 2000 Annual Report Download - page 3

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2000 was a defining year for Textron, as we proved our ability to manage
through turbulent times. We drove organic growth by improving performance
of our market-leading businesses and investing in innovation. We also
strengthened our portfolio with the addition of 11 new companies. And, we
continued to apply the rigorous principles of Textron Quality Management
(TQM) to improve our operating performance and margins.
These actions helped our Company offset the impact of the year’s chal-
lenging operating environment, which included a slowdown in both the U.S.
and European economies. Our record performance in 2000 speaks for itself:
Revenues rose to a record $13.1 billion, a 10 percent increase, marking
our fifth consecutive year of double-digit revenue growth.
Earnings per share before special charges grew 15 percent this year,
marking our 11th year of consistent earnings growth and our eighth
year of double-digit increases.
Segment profit margins improved by 70 basis points to 10.8 percent as
a result of our aggressive cost reduction efforts under TQM.
We continued to maintain a strong balance sheet, with debt-to-capital
of 32 percent and free cash flow of $463 million, both within our
target range.
Our businesses made great strides in key areas during the year:
In our Aircraft segment, Bell Helicopter and Cessna Aircraft continued
to define their markets and exceed customer expectations – evidenced
by a record backlog of $8.1 billion.
Our Automotive business achieved record results, improving segment
margins by 60 basis points despite a rapid decline in North American
automotive production at the end of the year. In addition, the segment
was honored with numerous quality and innovation awards. We won
$829 million in new business, fueling continued growth for the future.
Within Fastening Systems, we’ve begun to see positive quarter-over-quarter
margin trends. During the last 12 months we’ve significantly strengthened
our management team to lead this business to higher operating efficiency
and growth.
In our Industrial Products segment, our Data-Signal-Voice (DSV) business
grew to over $150 million in annualized sales as a result of acquisition
and internal investment. This group is emerging as a strong player in this
niche of the broader telecommunications market. And within our Golf
and Turf business, we leveraged our brand strength to penetrate new,
non-traditional markets with products such as E-Z-GO’s new rough-terrain
vehicle which serves the rural sportsman and agriculture markets.
At Textron Financial, we achieved our 22nd consecutive year of net income
growth by focusing on high-growth, niche markets and maintaining
industry-setting standards for credit quality in our portfolio.
Lewis B. Campbell
Chairman and Chief Executive Officer
“We have developed
a new strategic frame-
work aimed at delivering
compelling growth by
creating a portfolio
of powerful businesses
and brands, and by
fostering enterprise
excellence – with return
on invested capital
as our compass for
guiding the way.”
To Our Shareowners, Employees and Customers:
1TEXTRON 2000 ANNUAL REPORT