E-Z-GO 2001 Annual Report Download - page 7

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Sincerely,
Lewis B. Campbell
Chairman, President, and CEO
Textron Annual Report 5
ROIC: Our Key Financial Management Metric
Last year, we adopted ROIC as our prim ary financial m easure of growth and value for our
shareholders. Unfortunately, during 2001 our ROIC slipped to 9 percent, slightly below our
weighted cost of capital. Obviously, this perform ance is unacceptable and we are com mitted to
im proving ROIC in 2002 through many of the initiatives mentioned in this letter.
Looking forw ard, we are confident that w e will m aintain our strong balance sheet and
achieve other key financial objectives by 2006:
ROIC of at least 400 basis points greater than our w eighted average cost of capital
Organic revenue growth averaging 5 percent per year
Segm ent profit m argins greater than 12 percent
Earnings per share growth averaging 10 percent per year
As w e continue along the path we’ve charted, these goals are realistic and achievable.
Textron Six Sigma: The Next Step
We’ve done much to transform our com pany in 2001, but 2002 w ill be a year of wider and deeper
change. As part of our 2002 reengineering effort, each of our business segments will implement
Textron Six Sigma – a rigorous application of the best elements of the Six Sigm a program s
developed by m any Fortune 100 com panies. Textron has the advantage of learning from those
com panies that have already traveled this path – we’ve learned from their successes and
missteps, and have created a customized program that substantially integrates the proven
techniques of Lean Manufacturing into the core methodologies of Six Sigm a. This unique
approach to business im provement has three key objectives: elim inate waste, reduce variability,
and accelerate grow th and innovation. Textron Six Sigm a will becom e an integral part of the
way w e do business, and will result in productivity gains, margin im provement, cost reduction,
higher ROIC, quality enhancements, and higher levels of custom er satisfaction.
2002: A Year of Focus and Execution
Our entire management team is focused on executing a defined set of individual initiatives that
are already beginning to fundam entally transform our company. These steps – the first of m any
– have positioned Textron for a new era of grow th as the econom y rebounds. Our vision is clear,
and although we have not yet arrived at our destination, it is beginning to com e into view :
a netw orked enterprise of globally strong businesses and powerful brands in attractive
industries. I am grateful for the support of our shareowners, custom ers and employees in
facing the m ajor challenges of 2001 and helping us create a much stronger Textron in 2002.
Lew is B. Campbell Chairm an, President, and CEO