E-Z-GO 2001 Annual Report Download - page 12

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10 Textron Annual Report
Strengthening our
business mix.
Building a coordinated netw ork of globally strong businesses and pow erful brands in
attractive industries is a strategic imperative for Textron. In our evaluation of “ industry
attractiveness” w e look at such attributes as size, growth rates, cyclicality and brand value.
Then w e look at the strength of the businesses them selves – and expect nothing less than
brand superiority, customer loyalty, proprietary technology and strong financial performance.
In 2001, w e determ ined that, w hile Textron Automotive Trim was a business w ith good
financial performance, its future industry attractiveness didn’t m easure up to our standards.
Add to this the significant investment that w ould have been necessary to stay com petitive
in this market and it’s clear w hy divesting this business was right for Textron. Other
businesses that did not fit Textron’s stringent criteria were Turbine Engine Components, our
Do-It-Yourself retail fastener business, and minor portions of our OmniQuip and Textron
Systems businesses.
We also strengthened our business mix through several strategic acquisitions, including
Textron Financial’s purchase of approximately $400 million in receivables from SunTrust
Credit, a national provider of com mercial finance services to the small business market.
This acquisition gives us an excellent opportunity to expand our reach, gain new customers,
and achieve 10 to 15 percent growth per year in this m arket. In addition, we acquired three
com panies and unified our entire com munications business under the Tempo brand. By
com bining the strongest brands in the industry, Tem po is better positioned to satisfy
customer needs and com pete in the m arketplace.
Next Steps:
Strengthening our