E-Z-GO 2001 Annual Report Download - page 25

Industrial Products
2001 vs. 2000
The Industrial Products segment’s revenues and profit decreased $417 million and $230 million, respec-
tively. Revenues decreased primarily due to lower sales in most of the segment’s businesses reflecting
softening demand from the depressed economy, with the largest decreases occurring at OmniQuip, Golf,
Turf and Specialty Products, and Fluid and Power and reduced sales due to the divestiture of Turbine
Engine Components in the third quarter 2001 ($39 million), partially offset by the contribution from acquisi-
tions. Profit decreased primarily due to the decline in sales volume, other decreases in profit at Golf, Turf
and Specialty Products and OmniQuip, and the impact of the divestiture of Turbine Engine Components ($6
million) partially offset by the benefit of restructuring activities and a $5 million gain on the divestiture of
a small product line. In addition to lower volumes, the decreases in profit at Golf, Turf and Specialty Products
and OmniQuip w ere primarily caused by manufacturing inefficiencies resulting from reduced production
which included the shut-dow n of certain facilities in an effort to reduce inventory levels, the impact of higher
rebates at Golf, Turf and Specialty Products to stimulate retail sales, a w rite-down of used golf car and other
inventories, and an increase in the reserve for receivables. During 2001, Textron recorded an impairment
charge at OmniQuip of $317 million, including goodwill of $306 million and intangibles of $11 million, as
discussed in the “ Special Charges, net” section.
2000 vs. 1999
The Industrial Products segment's revenues and profit increased $640 million and $47 million, respectively.
Revenues increased as a result of the contribution from acquisitions, primarily OmniQuip and InteSys
Technologies. Profit increased primarily as a result of the contribution from acquisitions and higher income
related to retirement benefits, partially offset by low er organic sales and unfavorable operating performance
at OmniQuip and Turbine Engine Components. During the fourth quarter 2000, Textron recorded a w rite-down
of Turbine Engine Components goodw ill for $178 million, as discussed in the “ Special Charges, net”
section.
Finance
2001 vs. 2000
The Finance segment’s revenues and profit increased $18 million and $3 million, respectively. Revenues
increased primarily due to higher syndication and securitization income ($68 million in 2001 vs. $37 million
in 2000), a $14 million gain from a leveraged lease prepayment, higher servicing fees and higher
investment income, partially offset by a low er average yield reflecting the low er interest rate environment.
Profit increased primarily due to higher revenue, partially offset by a higher provision for loan losses ($82
million in 2001 vs. $37 million in 2000) as a result of higher charge-offs and higher operating expenses
primarily related to managed receivables.
2000 vs. 1999
The Finance segment’s revenues and profit increased $228 million and $62 million, respectively.
Revenues increased due to a higher level of average receivables ($5.8 billion in 2000 vs. $4.3 billion in
1999), reflecting a balance of both acquisitive and organic grow th, a higher yield on receivables and higher
syndication and securitization income ($37 million in 2000 vs. $14 million in 1999). Profit increased as the
benefit of the higher revenues w as partially offset by higher expenses related to managed receivables and
a higher provision for loan losses.
Textron Annual Report 23
Industrial Products
Revenues
$2,445
$3,085
$2,668
010099
(14)%26%21%
Segment
Profit
$303
$350
$120
010099
(66)%16%31%
Finance
Revenues
3%
$463
$691 $709
010099
49%26%
Segment
Profit
$128
$190 $193
0099
48%13% 2%
01