E-Z-GO 2001 Annual Report Download - page 24

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Automotive
2001 vs. 2000
The Automotive segment’s revenues and profit decreased $323 million and $86 million, respectively.
䊳
Trim revenues decreased $263 million primarily due to North American automotive original equipment
manufacturer production decreases, customer price reductions and an unfavorable foreign exchange
impact resulting from a w eaker Brazilian Real, partially offset by the contribution from acquisitions. Profit
decreased $84 million primarily due to the lower sales volume, customer price reductions and start-up
costs on new programs, partially offset by the benefit of restructuring and other cost containment
activities, and the settlement of outstanding customer claims.
䊳
Fuel Systems and Functional Components revenues decreased $60 million primarily as a result of the
divestiture of non-core product lines in the fourth quarter of 2000 and the first half of 2001, customer
price reductions and the unfavorable impact of foreign exchange, partially offset by higher sales volume.
Strong European sales in the first half of 2001, coupled w ith the success of several customer platforms
at Kautex, have mitigated the negative impact from reduced North American volumes. Profit decreased
$2 million primarily due to customer price reductions, a $4 million gain in 2000 on the sale of tw o non-
core product lines and the unfavorable impact of foreign exchange, partially offset by the benefit of cost
reduction activities and a $7 million gain on the sale of a small product line in 2001.
2000 vs. 1999
The Automotive segment’s revenues and profit increased $56 million and $24 million, respectively. These
results w ere achieved despite North American automotive original equipment manufacturer production
decreases in the fourth quarter 2000.
䊳
Trim revenues increased $46 million due to the contribution from acquisitions and major new program
launches, partially offset by customer price reductions. Profit increased $13 million due to improved
operating performance and the contribution from acquisitions, partially offset by higher petroleum-
based resin prices, customer price reductions and higher engineering and design expense to support
future programs.
䊳
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 $11 million due to improved operating performance at Kautex and a gain
from the sale of tw o non-core product lines, partially offset by the unfavorable impact of foreign
exchange, customer price reductions and higher petroleum-based resin prices.
Fastening Systems
2001 vs. 2000
The Fastening Systems segment’s revenues and profit decreased $317 million and $129 million, respec-
tively. The revenue and profit decreases were primarily due to depressed market demand in most
businesses, customer price reductions and the unfavorable impact of foreign exchange in its European
operations, partially offset by the contribution from acquisitions. Profit decreased primarily due to the
low er sales, customer price reductions, manufacturing inefficiencies primarily as a result of production
decreases to reduce inventory levels and the impact of smaller production lot sizes, a $5 million loss on
the divestiture of a non-core product line and a customer w arranty issue, partially offset by the benefit of
restructuring activities.
2000 vs. 1999
The Fastening Systems segment’s revenues and profit decreased $63 million and $13 million, respectively.
Revenues decreased due to the unfavorable impact of foreign exchange in its European operations, low er
volume in the heavy truck industry and customer price reductions, partially offset by the contribution from
acquisitions. Profit decreased as improved operating performance and the benefit from acquisitions were
more than offset by the unfavorable impact of customer price reductions, foreign exchange and low er
volume in the heavy truck industry. Textron recorded a $128 million goodw ill impairment w rite-down
related to this segment, as discussed in the “ Special Charges, net” section.
22 Textron Annual Report
Automotive
Revenues
$2,868 $2,924
$2,601
010099
2%22% (11)%
Segment
Profit
$220
$244
$158
010099
(35)%11%29%
(16)%
Fastening Systems
Revenues
$2,059 $1,996
$1,679
010099
(3)%17%
Segment
Profit
$188 $175
$46
010099
(74)%(7)%1%