E-Z-GO 2006 Annual Report Download - page 23

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Item 1. Business of Textron
and sold to departments or agencies of the U.S. Government. AWB LLC currently is performing under a SDD subcontract to Lockheed Martin to
design, develop, manufacture and support VH-71 helicopters for the U.S. Marine Corps Helicopter Squadron HMX.
Bell’s helicopter business competes against a number of competitors based in the U.S. and other countries, and its spare parts business competes
against numerous competitors around the world. Competition is based primarily on price, quality, product support, performance, reliability and
reputation.
Textron Systems is a primary supplier to the defense, aerospace and general aviation markets. Its principal strategy is to address the emphasis
being placed by the U.S. Department of Defense on network centric warfare and the leveraging of advances in information technology by focusing
on the development and production of networked sensors, weapons and the associated algorithms and software. Textron Systems manufactures
“smart” weapons, airborne and ground-based surveillance systems, aircraft landing systems, hovercraft, search and rescue vessels, armored
vehicles and turrets, reciprocating piston aircraft engines, and aircraft and missile control actuators, valves and related components. Textron Sys-
tems is involved in supplying the U.S. Air Force with some of its premier smart weapons as prime contractor for the Sensor Fuzed Weapon and is
a subcontractor to The Boeing Company for tail actuation systems on the Joint Direct Attack Munition and the next generation Small Diameter
Bomb. Textron Systems is a tier one supplier of unattended ground sensors and intelligent munitions systems for the U.S. Army’s Future Combat
System. In December 2006, Textron Systems acquired Overwatch Systems, a leading supplier of networking, situational awareness and intelli-
gence analysis software. While Textron Systems sells most of its products directly to U.S. customers, it also sells an increasing number of prod-
ucts in more than 25 other countries through a growing, global network of sales representatives and distributors.
Actuation products for the aerospace, defense and industrial markets are sold under trade names of HR Textron and APCO. Specialty marine, land
vehicle and turret products are sold under the trade names of Textron Marine & Land Systems and Cadillac Gage. The recognized need for
armored vehicles for secure transport of U.S. and other armed forces has resulted in increased demand for the highly protected and cost-effective
vehicles offered by Textron Marine & Land Systems. Weapons, surveillance and landing systems are sold under the Textron Defense Systems
name. Reciprocating piston aircraft engines are sold under the Lycoming name directly to general aviation airframe manufacturers and in the after-
market through domestic and international distributors. Lycoming also is the exclusive supplier of engines for Cessna’s product line of new single
engine aircraft.
Textron Systems competes against a number of competitors in the U.S. and other countries on the basis of technology, performance, price, quality
and reliability, product support, installed base and reputation.
Cessna Segment
Based on unit sales, Cessna Aircraft Company is the world’s largest manufacturer of general aviation aircraft. Cessna currently has four major
product lines: Citation business jets, single engine turboprop Caravans, Cessna single engine piston aircraft and aftermarket parts and services.
Revenues in the Cessna segment accounted for approximately 36%, 35% and 30% of our total revenues in 2006, 2005 and 2004, respectively.
The family of business jets currently produced by Cessna includes the Mustang, Citation CJ1+, Citation CJ2+, Citation CJ3, Citation Encore+,
Citation XLS, Citation Sovereign and Citation X. The Citation X is the world’s fastest business jet with a maximum operating speed of Mach .92.
First customer deliveries of the Citation CJ2+, an upgrade to the CJ2, commenced in April 2006. First deliveries of the Encore+, an upgrade of the
Citation Encore, are scheduled to commence in 2007. The Citation Bravo has been discontinued with the last delivery in December 2006.
The Cessna Caravan is the world’s best selling utility turboprop. Caravans are offered in three models: the Grand Caravan, the Super Cargomaster
and the Caravan 675. Caravans are used in the U.S. primarily for overnight express package shipments and for personal transportation. Interna-
tional uses of Caravans include humanitarian flights, tourism and freight transport.
Cessna now has six models in its single engine piston product line: the four-place 172 Skyhawk and 172 Skyhawk SP, 182 Skylane and Turbo 182
Skylane, and the six-place 206 Stationair and T206 Turbo Stationair.
The Citation family of aircraft currently is supported by a total of 10 Citation Service Centers owned and operated by Cessna, along with autho-
rized independent service stations and centers in more than 18 countries throughout the world. The Wichita Citation Service Center is the world’s
largest general aviation maintenance facility. The Cessna-owned Service Centers provide customers with 24-hour service and maintenance.
Cessna also provides 24-hour spare parts support for Citation aircraft. Cessna Caravan and single engine piston customers receive product sup-
port through independently owned service stations and 24-hour spare parts support through Cessna. Cessna markets its products worldwide