E-Z-GO 2000 Annual Report Download - page 4

Despite our outstanding 15 percent earnings growth, we faced a major disappointment in
2000 as our stock price fell 39 percent by year end. We believe that, at today’s levels, Textron
stock represents a real value. In fact, during 2000 we invested $358 million to repurchase
approximately 6.6 million shares.
Meeting the challenge of an increasingly competitive business environment, we initiated
a Company-wide restructuring program in 2000 to optimize operating efficiencies within our
Automotive, Fastening Systems and Industrial Products segments. We began to consolidate
manufacturing facilities, rationalize product lines, divest non-core units and outsource non-
core production. When the restructuring is complete, it will generate annual savings of
approximately $100 million to $120 million.
A New Strategic Framework to Drive Growth
For the past 11 years, Textron has distinguished itself
through a profound commitment to consistent growth.
Indeed, we have fulfilled this commitment unfailingly,
reporting 45 consecutive quarters of increased earnings.
However, it is clear that consistent growth alone is
no longer sufficient to make Textron a convincing and
compelling investment. As a result, we are committed
to transforming Textron using a new strategic framework
aimed at delivering compelling growth. We will accom-
plish this by creating a portfolio of powerful businesses
and brands, and by fostering enterprise excellence –
with return on invested capital (ROIC) as our compass
for guiding the way.
Creating a Portfolio of Powerful Businesses and Brands
Consistent growth has been a Textron hallmark over the
past decade and we intend to continue that tradition. Under the tenets of our new strategic
framework, we will create a simpler, more focused portfolio of strong businesses with powerful
brands. Textron businesses will operate only in attractive industries – industries that are growing
faster than GDP levels; where competition is based on value and innovation rather than cost;
and where leading players have the potential to earn high returns on capital. Increasingly,
industry attractiveness will be a key criterion in our portfolio decisions. Our reinvigorated
portfolio will be recognized for its substantial brand equity as measured by indices such as
market share, competitive differentiation and margins.
Many of the businesses in the Textron portfolio are powerful brands and already demonstrate
these characteristics. Bell Helicopter is just one example. Here, the strength of our brand has
allowed us to capture leading market share as we invest in tiltrotor technology. And at Cessna
Aircraft, we continue to differentiate ourselves with the fastest business jet in the world and
a record delivery of three new models in 2000. E-Z-GO and Greenlee have become their cus-
tomers’ first choice by consistently delivering leading-edge products and technologies. And the
list continues. We are focused on transitioning all of our businesses into strong, power-brand
positions to deliver improved growth across our portfolio.
Achieving Enterprise Excellence
Another strategic imperative is to leverage the potential of the Textron enterprise. Throughout
our history, our primary focus has been on optimizing each business individually. We have
launched a new initiative called “Enterprise Excellence,” which enables us to tap our collective
potential to gain greater leverage in areas such as e-business, supply chain management,
shared services and global Internet infrastructure. These new efforts will foster organic
growth while dramatically reducing costs.
Lewis B. Campbell
Chairman and Chief Executive Officer
TEXTRON 2000 ANNUAL REPORT 2